India’s credit card spending is set to cross ₹25.4 trillion (~$304 billion) in 2025, according to a GlobalData report. Despite lower penetration compared to debit cards, credit cards now drive 81% of all card transaction value, thanks to rewards, EMI options, and online convenience.
What’s Driving This Growth?
| Factor | Impact |
|---|---|
 Fintech & Digital Push |
Seamless app-based payments, virtual cards, UPI integration |
 Reward Programs |
Cashback, travel points, fuel benefits attract users |
 EMI & BNPL |
Flexible repayment drives usage for large purchases |
 Aggressive Bank Campaigns |
New card launches, co-branded partnerships |
 Young Urban Professionals |
Prefer credit for convenience, credit score building |
Key Stats:
- 14.7 crore credit cards in circulation as of mid-2025
- Monthly spend crossed ₹1.8 lakh crore (June 2025)
- Online spend dominates over PoS usage (~65% via e-comm)
- 81% of all card transaction value comes from credit cards, not debit
- Debit card usage continues to decline in both volume and value
My Take:
India’s maturing financial ecosystem is quickly moving toward credit-led consumption, especially in urban areas. The high-value transactions are migrating to credit cards due to benefits like cashback, fraud protection, and EMI support.
But there’s a caveat—credit inclusion is still limited to salaried and urban groups. Rural, informal, and low-income segments remain debit-first or UPI-only, which could lead to credit inequality if not addressed through innovations like:
- Low-limit credit cards
- Credit-on-UPI expansion
- Account aggregator–based underwriting.