India Credit Card Market, By Type Market Share Analysis (General Purpose & Private Label), By Service Providing Company (Visa, Mastercard, RuPay & Others), By Credit Score Market Share Analysis (300 – 500, 501 – 700, 701 – 850 and Above 851), By Credit Limit Market Share Analysis (Upto 25 K, 25-50K, 51k-2L & 2-5L), By Card Type Market Share Analysis (Base, Signature and Platinum), By Benefits Market Share Analysis (Cashback & Voucher), By Region, Competition, Forecast & Opportunities, 2018-2028
Published Date: February - 2025 | Publisher: MIR | No of Pages: 320 | Industry: BFSI | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndia Credit Card Market, By Type Market Share Analysis (General Purpose & Private Label), By Service Providing Company (Visa, Mastercard, RuPay & Others), By Credit Score Market Share Analysis (300 – 500, 501 – 700, 701 – 850 and Above 851), By Credit Limit Market Share Analysis (Upto 25 K, 25-50K, 51k-2L & 2-5L), By Card Type Market Share Analysis (Base, Signature and Platinum), By Benefits Market Share Analysis (Cashback & Voucher), By Region, Competition, Forecast & Opportunities, 2018-2028
India Credit Card market is anticipated to project robust growth in the forecast period on account of increasing adoption of cashless transactions, attractive offers on the usage of credit cards, rising acceptance of credit cards, economy shift from debit based to credit based, and rising co-branded card offerings in the market.
In India, the credit card market has expanded significantly. The technological landscape is changing rapidly, with numerous developments taking place. Smooth onboarding processes, unique card products, individualized offers and rewards, and improved mobile apps are few of the new developments that have proven to be very advantageous to current customers and have drawn in new ones as well. Additionally, credit card issuers are working to increase awareness and innovation in this market. The credit card market in India has experienced significant growth, which confirms the same.
In July 2022, there were 78 million credit cards in use. Additionally, in May 2022, the total amount spent on credit cards rose to USD15.16 billion (INR 1.13 lakh crore), a record high. The COVID-19 pandemic caused the growth trajectory to dip during FY 2020–21, when credit card spending increased only marginally by 9%. This is despite the significant overall increase in credit card spending. The Reserve Bank of India (RBI) also made a few interventions that prevented some of the biggest credit card issuers from issuing new cards in India.
Following demonetization and numerous government initiatives to make India a cashless economy, credit card acceptance is increasing in the nation. POS terminals accept credit cards for a variety of goods and services. For instance, the RBI reports that there were 131,998,684 POS volume in India, as on November 2022.
Recently, the credit card industry has been impacted by the rise of digital payments. Unified Payments Interface (UPI) transactions have increased quickly in recent years owing to the widespread use of smartphones, low-cost internet access, and nearly all merchants having the necessary permissions in place. Several FinTech companies are also working with traditional banks to offer credit cards and other digital lending services, including buy now, pay later (BNPL), equated monthly instalment (EMI), and others. For example, RuPay credit cards, which are primarily issued by public sector banks, are currently permitted to be linked to UPI apps. Since the RBI has authorized the connection of credit cards to UPI, it could make quick response (QR)-based credit payments at physical retailers, easier. Additionally, because multiple payment methods will be accepted from a single app, it will make the payment process simpler for consumers.
Download Free Sample Report Limited Penetration of Credit Cards is Hindering the Market Growth
In comparison to India, the United States has 1.5 billion active credit cards, which represents 67% of all active cards in the country. Credit cards’ use for purchases is more popular in America than other countries because they are more convenient and straightforward to use without having to worry about account-related frauds.
When it comes to penetration reaching new heights, psychological factors are still in play. The conservative middle class in India still fears using credit cards and credit in general. Some of the obstacles to the expansion of the Indian credit card market include the perception of additional high interest rates and uncertainty regarding the benefits associated with the credit cards. However, many credit card companies have added extra benefits like discounts, points for travel, and many other perks to entice customers in an effort to reduce the impact of these factors.
Variety of Offers With the Credit Card
When making payments and purchases online for a variety of online services, using a credit card offers users numerous advantages. Users can benefit from rewards, gifts, vouchers, and cashback offers when making online credit card payments for things like hotel reservations, mobile recharges, movie tickets, shopping, and other things. For instance, with the HDFC Bank Regalia Credit Card, the individual can avail an unlimited access to lounges, golf privileges, and discounts on dining and retail purchases. Additionally, cardholders receive free movie tickets and up to 10,000 reward points each month. Similarly, the benefits are offered by the SBI Card Elite, including access to airport lounges, discounts on fuel purchases, and dining discounts of up to 50%. The cardholders receive a reward point system and travel insurance.
Entrance of NBFCs in Credit Card Market
The top six credit card issuers account for 81% of the cards in this highly concentrated market. In addition, more players are required as about 350 million people are anticipated to have access to online shopping over the next five years. The RBI has recently taken a more accommodative stance toward allowing NBFCs to launch their credit business with prior approval if they have a minimum net worth of USD1.34 million (INR 100 crore). The entry of new players will be made possible by this decision, thereby increasing competition in the credit card market.
Market Segmentation
The India Credit Card market is segmented based on Type, Service Providing Company, Credit Score, Credit Limit, Card Type, Benefits, Region, and by Competitional Landscape. Based on type, the market is further fragmented into General Purpose & Private Label. Based on Service Providing Company, the market is segmented into Visa, Mastercard, RuPay & Others. Based on Credit Score, the market is categorized into 300 – 500, 501 – 700, 701 – 850 and Above 851. Based on Credit Limit, the market is subjected into parts such as upto 25 K, 25-50K, 51k-2L & 2-5L. Based on Card Type, the market is fragmented into Base, Signature and Platinum. Based on the Benefits, the market is segmented into Cashback & Voucher. The market analysis also studies the regional segmentation to be divided among north, west, south, & east.
Company Profiles
HDFC Bank Ltd., SBI Cards and Payment Services Limited, ICICI Bank Limited, Axis Bank Limited, Citibank India, Bank of Baroda, RBL Bank Ltd., Kotak Mahindra Bank Limited, Punjab National Bank, IndusInd Bank, are among the major market players in India that lead the market growth of the India Credit Card Market.
|
Attribute |
Details |
|
Base Year |
2022 |
|
Historic
Data |
2018 –
2021 |
|
Estimated Year |
2023 |
|
Forecast
Period |
2024
– 2028 |
|
Quantitative Units |
Volume by USD Million, and CAGR for
2018-2023 and 2023-2028 |
|
Report
coverage |
Revenue
forecast, company share, competitive landscape, growth factors, and trends |
|
Segments Covered |
Type Service Providing Company Credit Score Card Type Credit Limit Benefits Region |
|
Regional
Scope |
North,
West, South & East |
|
Key Companies Profiled |
HDFC Bank Ltd., SBI Cards and Payment
Services Limited, ICICI Bank Limited, Axis Bank Limited, Citibank India, Bank
of Baroda, RBL Bank Ltd., Kotak Mahindra Bank Limited, Punjab National Bank,
IndusInd Bank |
|
Customization
Scope |
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
|
Delivery
Format |
PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/pdf format on special request) |
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