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India credit, charge card payment market to cross $300bn in 2025: Report

India's credit and charge card payments market is projected to grow by 14 per cent in 2025 to reach Rs 25.4 trillion ($303.9 billion), driven by rising consumer preference for non-cash transactions, suggests a latest report by GlobalData, a leading London-based leading data and analytics firm. According to the report, India saw a growth of 27.9 per cent in credit and charge card payments value in 2023, and continued its growth trajectory with 15.3 per cent growth to reach the Rs 22.3 trillion ($266.5 billion) mark in 2024. Despite lower penetration than debit cards, GlobalData believes, credit and charge cards are highly preferred for payments. Payment frequency for these (credit and charge) cards, their repost suggests, is expected to reach 54.2 times a year in 2025 — much higher than for debit cards. "With the expansion of the middle-class workforce, increasing incomes, and heightened awareness of credit card benefits—fueled by banks' promotional campaigns—the adoption and utilisation of credit cards are on the rise,' said Ravi Sharma, Lead Banking and Payments Analyst at GlobalData. Total card spends Meanwhile, total card spends decreased during Jun 2025 (Rs 1.83 trillion versus Rs.1.90 trillion in May 2025), suggests a report by IDBI Capital. Credit Card spends decreased by around 3.6 per cent month-on-month (versus a rise of around 3 per cent in April 2025). Total number of cards in force stood at around 111.2 million as of May 2025 (up by around 7 per cent YoY). Net new card additions in June 2025 were almost 'nil', indicating a cautious or subdued sentiment among lenders towards unsecured loans, the IDBI Capital report said. Credit card volume That said, they expect card spends to gradually increase in the coming months of fiscal 2025-26 (FY26) supported by the festive season and other consumption tailwinds. 'Net new card additions are expected to see some improvement in FY26 though lenders will priorities on better credit quality as well as focus on cross-sell to existing customers rather than aggressive acquisitions,' said Bunty Chawla, an analyst tracking the sector at IDBI Capital. Market dominance Credit and charge cards, GlobalData said, dominated in terms of payment card transaction value, accounting for 81 per cent of the total in 2024. This it attributed to the value-added benefits that are provided to incentivise credit and charge card payments, such as discounts and cashback. 'The ongoing shift from cash to electronic payments, availability of pricing benefits on credit and charge cards and increasing merchant acceptance are expected to further boost credit and charge card usage. The credit and charge card market are expected to grow at a CAGR of 11.5 per cent between 2025 and 2029 to reach Rs 39.3 trillion ($470.1 billion) in 2029.' An important factor contributing to this uptrend in India, GlobalData believes, is the availability of installment facilities. Notably, rising e-commerce payments in the country also contributed to the overall growth in credit and charge cards, accounting for 11.2 per cent of total e-commerce transaction value in 2024, the report said. "This can be attributed to the benefits offered with credit and charge cards for online payments," GlobalData report said.