India’s credit card market to reach 200 million by 2028-29, says PwC (Image source: iStock)
New Delhi: This was highlighted in a report by PwC that the number of Credit cards It is expected to reach 200 million at a CAGR of 15 percent in India.
The number of credit cards issued has doubled over the past five years, showing that the credit card industry has seen substantial expansion, according to the report. This pace is expected to continue, as the market is likely to repeat this growth in the coming years.
The report said that the credit card market It is expected to reach 200 million, doubling its current number by fiscal year 2028-29. Over the last five years, this industry has witnessed a 100 per cent increase in cards issued and is expected to replicate this growth in the next five fiscal years.
The report adds that the credit card industry has also seen a significant increase in transaction activity. Both transaction volume and value have increased by 22% and 28% respectively. The introduction of new products, expansion of customer segments and innovative offerings are contributing to this growth.
However, the report also highlighted a shift in consumer preferences, with debit card transactions declining in both value and volume. In the 2023-24 financial year, there was a 33% decline in debit card transaction volume from the previous year and an 18% year-on-year decline in debit card spending.
The investigation said the number of Debit cards The number of debit cards issued in the country has been growing slightly each year, but during fiscal year 2023 and 2024, the volume and value of debit cards decreased significantly.
The growing popularity of the UPI This is the reason for this decline as UPI offers seamless transactions and has become the preferred payment method for small and medium-sized merchants due to its zero Merchant Discount Rate (MDR).
The report also noted that another reason for the decline of debit cards is that they have struggled to compete with credit cards in terms of rewards. Debit cards do not appeal as much to customers due to a lack of awareness of existing benefits and a lack of attractive rewards programs.
However, digital payments In India, e-commerce continues to thrive, with transaction volumes growing 42 percent year-on-year in FY23-24. This trend is projected to quadruple by FY28-29.
According to the report, new business models, technological improvements, increasing customer awareness and innovations by players in the payment ecosystem are some of the drivers of the continued growth of digital payments.
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