India Credit and Charge Card Payments Market to Grow by 15.5% in 2024

General
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Key Insights:

  1. Market Growth:

    • Credit and charge card payments are set to grow by 15.5% in 2024, reaching Rs 22.3 trillion ($270.4 billion).
    • This growth follows a 27.8% increase in 2023, driven by rising consumer spending.

  2. Shift Away from Cash:

    • The use of cash has gradually declined in India, with credit and charge cards now accounting for 75.7% of total card payment value.
    • Cards were used 35.9 times/year in 2023, much higher than debit cards, and this figure is expected to rise to 37.6 times/year by 2028.

  3. E-commerce Payments:

    • Credit and charge cards contributed 15.4% of total e-commerce transactions in 2023.
    • Benefits like reward points, discounts, and instalment payment options have made them the preferred payment tool for online shopping.

  4. Flexible Payment Options:

    • The availability of instalment plans for credit card users has fueled card usage, with many banks offering flexible monthly payment options for big-ticket purchases.

  5. Government Initiatives:

    • The Payments Infrastructure Development Fund (PIDF), launched by the RBI, is helping expand payment infrastructure, particularly in tier 3-6 cities.
    • By November 2023, over 827,000 POS terminals and 27.2 million QR code acceptance points were deployed to promote card payments.

  6. Promising Future Outlook:

    • With rising disposable incomes and improvements in payment infrastructure, the market is projected to grow at a 12.6% CAGR between 2024 and 2028.

Conclusion:

India’s credit and charge card payments market is on a robust growth trajectory, driven by the shift from cash, increasing e-commerce transactions, and the government’s push for digital payments. The future looks promising for consumers and the industry alike.