India's Credit Card Market Set for Massive Growth

4 Sep 2024 , 11:03 AM

According to a PwC research, 200 million credit cards are anticipated to be issued in India at a 15% compound annual growth rate.

According to the report, the number of credit cards issued has doubled over the last five years, indicating a considerable expansion in the credit card business. According to the analysis, this trend is anticipated to continue and the market is projected to mirror this rise in the upcoming years.

By FY28–29, the number of credit cards in circulation in India is predicted to double to 200 million. Within the next five financial years, the industry, which has experienced a 100% increase in issued cards over the previous five years, is expected to mirror this growth, according to the research.

The survey also stated that there has been a significant increase in transactional activity within the credit card business, coinciding with the rise in credit card issuing. Transaction values have increased by 28%, whereas transaction volumes have increased by 22%. According to the report, the development of consumer segments, creative offerings, and the launch of new goods are all responsible for this growth.

The research did point out a decrease in the use of debit cards, though. The volume and value of debit card transactions have declined, which is indicative of a change in customer preferences. In FY23–24, there was a 33% decline in debit card transaction volume over the prior year and an 18% annual decline in debit card spending.

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