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.