A new PwC report reveals that India’s credit card market is set to double and hit 200 million cards by 2028-29, growing at an annual rate of 15%. Over the past five years, the number of credit cards has already doubled, and this growth is expected to continue.
The report also highlights a significant increase in credit card transactions. Transaction volumes have grown by 22%, and transaction values have jumped by 28%. This growth is driven by new credit card products and innovative features.
In contrast, debit card usage is declining. Debit card transactions fell by 33% in volume and 18% in value in FY23-24. This drop is linked to the rising popularity of the Unified Payments Interface (UPI), which is favored for its ease of use and zero Merchant Discount Rate (MDR). Debit cards are also struggling to compete with credit cards’ rewards and benefits.
Despite the decline in debit card use, digital payments in India are booming, with transaction volumes up by 42% year-on-year in FY23-24. This trend is expected to triple by 2028-29, driven by new payment innovations, technology advancements, and growing customer awareness.
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