Indian Credit Card Market Expected to Surpass 20 Crore by 2029!

The credit card landscape in India is expanding at a rapid pace. According to a recent report by PwC, the number of credit cards in circulation is expected to reach 20 crore by 2029, driven by an impressive 15% CAGR. Let’s dive into some key highlights from the report:

Key Insights:

  • Doubling of Credit Cards:
    Over the last 5 years, the credit card count has doubled, and this trend is set to continue in the next 5 years.
  • Current Status:
    India has issued a total of 10.1 crore credit cards, with major banks like HDFC, SBI, ICICI, and Axis Bank leading the market.
  • Transaction Growth:
    • Volume: Increased by 22%
    • Value: Surged by 28%

What’s Happening with Debit Cards?

While credit card usage is soaring, debit card usage has been on the decline:

  • Transaction Volume: Dropped by 33%
  • Spending: Decreased by 18% in FY 23-24

One major reason is the rise of UPI payments, which have grown by 42% YoY and are expected to triple by FY28-29. UPI’s instant payment capability and zero MDR have made it a popular choice among consumers.

What Does This Mean?

This growth indicates a major shift in how Indians are making payments—moving away from traditional methods like debit cards and embracing credit and digital payments more than ever.