The credit score and cost card funds market in India is projected to expertise vital progress in 2025, with an anticipated enhance of 14 per cent to succeed in Rs 25.4 lakh crore ($303.9 billion). This enlargement is pushed by rising client choice for non-cash transactions and beneficial financial situations.
In line with GlobalData, India witnessed a 27.9 per cent progress in credit score and cost card funds worth in 2023, adopted by a 15.3 per cent enhance to Rs 22.3 lakh crore ($266.5 billion) in 2024. This upward trajectory is anticipated to proceed, regardless of international uncertainties.
Ravi Sharma, Lead Banking and Funds Analyst at GlobalData, famous the rising recognition of credit score and cost playing cards over debit playing cards, stating: “Regardless of decrease penetration than debit playing cards, credit score and cost playing cards are extremely most well-liked for funds. Fee frequency for these playing cards stood at 54.2 occasions a yr in 2025—a lot increased than for debit playing cards. With the enlargement of the middle-class workforce, rising incomes, and heightened consciousness of bank card advantages—fuelled by banks’ promotional campaigns—the adoption and utilisation of bank cards are on the rise.”
The dominance of credit score and cost playing cards in transaction worth, accounting for 81 per cent of complete cost card transaction worth in 2024, is attributed to value-added advantages like reductions and cashback. These incentives have inspired the usage of such playing cards for higher-value transactions throughout the nation.
Facilitating this progress additional is the supply of instalment cost choices by main banks in India. For example, Axis Financial institution and HDFC Financial institution supply bank card holders the pliability to transform purchases into month-to-month instalments, making it simpler for customers to handle large-ticket bills.
E-commerce funds have additionally considerably contributed to this development, representing 11.2 per cent of complete e-commerce transaction worth in 2024. The advantages of utilizing credit score and cost playing cards for on-line transactions, corresponding to safety and ease of use, proceed to draw customers.
In a transfer anticipated to stimulate additional progress, the Reserve Financial institution of India decreased the important thing coverage price by 50 foundation factors to five.50 per cent in June 2025. This discount is more likely to decrease rates of interest on loans, together with bank cards, making credit score extra accessible to customers.
Trying ahead, Sharma commented in the marketplace’s potential: “India’s credit score and cost card funds market is poised for continued enlargement. The continuing shift from money to digital funds, availability of pricing advantages on credit score and cost playing cards, and rising service provider acceptance are anticipated to additional increase credit score and cost card utilization. The market is anticipated to develop at a CAGR of 11.5 per cent between 2025 and 2029 to succeed in Rs 39.3 lakh crore ($470.1 billion) in 2029.
