India Credit Card Payment Market

India Credit Card Payment Market Overview:

The India credit card payment market size reached USD 22.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 40.3 Billion by 2033, exhibiting a growth rate (CAGR) of 6.70%​​​​​​​ during 2025-2033. The market is expanding fast, fueled by growing digital penetration, varied card products, and accelerating consumer expenditure across industries, such as travel, retail, and entertainment, with large players improving security, rewards, and contactless payment features for hassle-free transactions.

India Credit Card Payment Market Trends:

Surge in Contactless and UPI-Linked Credit Card Transactions

India's credit card market is seeing a dramatic transition to contactless and UPI-based credit card payments. As consumers highly use digital payment methods, tap-and-pay transactions are being adopted for convenience. NFC-enabled credit cards enable customers to make payments instantly without PIN authentication for small amounts, improving the shopping experience. Also, the convergence of credit cards with UPI has further transformed payments, allowing for frictionless transactions across millions of merchants that earlier accepted only debit cards or mobile wallets. This is propelling greater transaction volumes, especially in urban India, where digital payments are already widespread. For instance, in August 2024, Visa launched cutting-edge payment innovations in Global Fintech Fest in Mumbai, which saw new digital payments being launched with HDFC Bank, Paytm, Axis Bank, and several others to improve security, accessibility, and merchant adoption for India. Moreover, government and regulatory authorities are actively encouraging these innovations to improve financial inclusion and minimize cash usage. As increasing consumers use contactless payments, payment providers and banks are looking to grow infrastructure and spur usage by offering cashback, reward schemes, and special merchant promotions.

Growth of BNPL and EMI-Based Credit Card Offers

The Equated Monthly Installment (EMI) and Buy Now, Pay Later (BNPL) models are quickly transforming India's credit card payment landscape. Customers are increasingly opting for flexible payment terms, enabling them to make high-ticket purchases more manageable. BNPL products enable customers to pay in interest-free installments, promoting discretionary spending in e-commerce, travel, and lifestyle categories. Likewise, EMI-based credit card promotions are becoming popular for high-ticket items like smartphones, appliances, and education fees. Banks and financial institutions are collaborating with merchants to offer zero-cost EMI plans, which waive interest payments if settled within a predetermined tenure. This is especially attractive for younger consumers and first-time credit users looking for financial convenience. The boosting penetration of fintech platforms is also driving this trend by providing customized credit solutions. As EMI and BNPL choices grow more readily available, lenders are turning their attention to prudent lending to reduce risk of overspending and defaults.

Increased Focus on Security and Fraud Prevention

As digital credit card transactions are rising in India, financial institutions are ramping up measures to reinforce security and protect against fraud. Cyber-attacks in the form of phishing, data theft, and unauthorized transactions have compelled strong security mechanisms. Tokenization, a method of replacing sensitive card information with tokens unique to each user, has emerged as a vital defense against card data theft for online transactions. Biometric identification, such as fingerprint and face recognition, is also being infused to enhance cardholder authentication. Furthermore, artificial intelligence (AI) and machine learning (ML) are being implemented to identify and prevent fraud in real time through spending pattern analysis and anomaly identification. Regulatory steps, including two-factor authentication on high-value payments and dynamic CVV codes, are also making payments more secure. Consumer campaigns are also essential in making the users aware about secure credit card usage. With digital transactions on the rise, an active security approach will be critical in ensuring trust in India's credit card system.

India Credit Card Payment Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on card type, provider, and application.

Card Type Insights:

• General Purpose Credit Cards
• Specialty Credit Cards
• Others

The report has provided a detailed breakup and analysis of the market based on the card type. This includes general purpose credit cards, specialty credit cards, and others.

Provider Insights:

• Visa
• Mastercard
• Others

A detailed breakup and analysis of the market based on the provider have also been provided in the report. This includes visa, MasterCard, and others.

Application Insights:

• Food and Groceries
• Health and Pharmacy
• Restaurants and Bars
• Consumer Electronics
• Media and Entertainment
• Travel and Tourism
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes food and groceries, health and pharmacy, restaurants and bars, consumer electronics, media and entertainment, travel and tourism, and others.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North, South, East, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Credit Card Payment Market News:

• In December 2024, Axis Bank partnered with Visa to introduce 'Primus' in India, an invite-only ultra-premium credit card for ultra-high-net-worth individuals. Providing unique privileges under Visa Infinite Privilege, Primus offers high-end luxuries such as private jets, personalized travel, fine dining experiences, and elite event access, rewriting premium banking experiences.
• In January 2024, India's Unified Payments Interface (UPI) rolled out UPI 3.0, taking digital transactions a notch higher through the integration of credit lines. The update will allow banks to provide pre-approved, short-duration, small-ticket loans through UPI, extending digital credit penetration. Top lenders, such as PNB, Axis Bank, SBI, and ICICI Bank have already conducted trials of this new feature.

India Credit Card Payment Market Report Coverage:

Key Questions Answered in This Report:

• How has the India credit card payment market performed so far and how will it perform in the coming years?
• What is the breakup of the India credit card payment market on the basis of card type?
• What is the breakup of the India credit card payment market on the basis of provider?
• What is the breakup of the India credit card payment market on the basis of application?
• What is the breakup of the India credit card payment market on the basis of region?
• What are the various stages in the value chain of the India credit card payment market? 
• What are the key driving factors and challenges in the India credit card payment?
• What is the structure of the India credit card payment market and who are the key players?
• What is the degree of competition in the India credit card payment market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India credit card payment market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India credit card payment market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India credit card payment industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.