India's Credit Card Market to Double in 5 Years

The credit card market in India is experiencing rapid growth, with the number of credit cards expected to reach 200 million, growing at a compound annual growth rate (CAGR) of 15%. This marks a significant expansion in the industry, as the number of cards issued has doubled over the past five years.

A report by PwC has projected that the number of credit cards in India will reach 200 million by FY28-29, with a compound annual growth rate (CAGR) of 15%. The credit card industry in India has already witnessed a significant expansion, doubling the number of issued cards in the past five years. The report anticipates that this momentum will continue, with the market likely to replicate this growth over the next five financial years.

This growth can be attributed to various factors, including increasing digital payments, growing consumer spending, and the expansion of financial services in both urban and rural areas. The report underscores the industry's resilience and potential, highlighting that the surge in the credit card market is expected to play a key role in driving the financial ecosystem in the country.

This growth can be attributed to increased digitalization, a rise in online transactions, the availability of rewards and benefits tied to credit cards, and the increasing penetration of financial services across urban and rural areas. As the industry continues to expand, it offers new opportunities for banks, fintech companies, and merchants to cater to an evolving consumer base that is becoming more comfortable with credit usage.

At the same time, digital payments in India are booming, with transaction volumes growing 42% year-on-year in FY23-24. This trend is expected to triple by FY28-29, fueled by innovations within the payment ecosystem, new business models, technological advancements, and increasing customer awareness. The rapid adoption of digital payment solutions marks a significant shift in India's financial landscape, positioning it for sustained growth in the coming years.

With this momentum, the credit card market in India is poised for even more substantial advancements in the coming years, contributing to financial inclusion and the broader digital economy. 

Ms. S Mohini Ratna - Editor VARINDIA