Report Description

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 stores, 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)

Report Scope:

In this report, India Credit Card market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

  • India Credit Card Market, By Type:
    • General Purpose
    • Private Label
  • India Credit Card Market, Service Providing Company:
    • Visa
    • Mastercard
    • RuPay
    • Others
  • India Credit Card Market, Credit Score:
    • 300 – 500
    • 501 – 700
    • 701 – 850
    • Above 851
  • India Credit Card Market, Credit Limit:
    • Upto 25 K
    • 25-50K
    • 51k-2L
    • 2-5L
  • India Credit Card Market, Card Type:
    • Base
    • Signature
    • Platinum
  • India Credit Card Market, Benefits:
    • Cashback
    • Voucher
  • India Credit Card Market, By Region:
    • North
    • West
    • South
    • East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in India Credit Card market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

India Credit Card Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Model Analysis)

4.1.  Sample Size Determination

4.2.  Respondent Demographics

4.2.1.     By Gender

4.2.2.     By Age

4.2.3.     By Occupation

4.3.  Most Important Factors Determining Usage for Credit Card Users

4.4.  Factors Influencing Credit Card Adoption in India

4.5.  Leading Credit Card Companies in Terms of Customer Service

4.6.  Frequency of Review of Credit Score by Credit Card Users

4.7.  Purpose of Using Credit Card

4.8.  Readiness to Increase Credit Limit

5.    India Credit Card Market Outlook

5.1.  Market Size & Forecast          

5.1.1.     By Volume

5.2.  Market Share & Forecast

5.2.1.     By Type Market Share Analysis (General Purpose & Private Label)

5.2.2.     By Service Providing Company Market Share Analysis (Visa, Mastercard, RuPay & Others)

5.2.3.     By Credit Score Market Share Analysis (300 – 500, 501 – 700, 701 – 850 and Above 851)

5.2.4.     By Credit Limit Market Share Analysis (Upto 25 K, 25-50K, 51k-2L & 2-5L)

5.2.5.     By Card Type Market Share Analysis (Base, Signature and Platinum)

5.2.6.     By Benefits Market Share Analysis (Cashback & Voucher)

5.2.7.     By Regional Market Share Analysis

5.2.7.1.         North Market Share Analysis

5.2.7.2.         West Market Share Analysis

5.2.7.3.         South Market Share Analysis

5.2.7.4.         East Market Share Analysis

5.2.8.     By Company Market Share Analysis

5.3.  India Credit Card Market Mapping & Opportunity Assessment

5.3.1.     By Type Market Mapping & Opportunity Assessment

5.3.2.     By Service Providing Company Market Mapping & Opportunity Assessment

5.3.3.     By Credit Score Market Mapping & Opportunity Assessment

5.3.4.     By Card Type Market Mapping & Opportunity Assessment

5.3.5.     By Benefits Market Mapping & Opportunity Assessment

5.3.6.     By Regional Market Mapping & Opportunity Assessment

6.    West India Credit Card Market Outlook

6.1.  Market Size & Forecast          

6.1.1.     By Volume

6.2.  Market Share & Forecast

6.2.1.     By Service Providing Company Market Share Analysis

6.2.2.     By Credit Score Market Share Analysis

6.2.3.     By Credit Limit Market Share Analysis

6.2.4.     By Card Type Distribution Channel Market Share Analysis

7.    South India Credit Card Market Outlook

7.1.  Market Size & Forecast          

7.1.1.     By Volume

7.2.  Market Share & Forecast

7.2.1.     By Service Providing Company Market Share Analysis

7.2.2.     By Credit Score Market Share Analysis

7.2.3.     By Credit Limit Market Share Analysis

7.2.4.     By Card Type Distribution Channel Market Share Analysis

8.    North India Credit Card Market Outlook

8.1.  Market Size & Forecast          

8.1.1.     By Volume

8.2.  Market Share & Forecast

8.2.1.     By Service Providing Company Market Share Analysis

8.2.2.     By Credit Score Market Share Analysis

8.2.3.     By Credit Limit Market Share Analysis

8.2.4.     By Card Type Distribution Channel Market Share Analysis

9.    East India Credit Card Market Outlook

9.1.  Market Size & Forecast          

9.1.1.     By Volume

9.2.  Market Share & Forecast

9.2.1.     By Service Providing Company Market Share Analysis

9.2.2.     By Credit Score Market Share Analysis

9.2.3.     By Credit Limit Market Share Analysis

9.2.4.     By Card Type Distribution Channel Market Share Analysis

10.  Market Dynamics

10.1.              Drivers

10.1.1.  Increasing Adoption of Cashless Transactions

10.1.2.  Attractive Offers on Usage of Credit Cards

10.1.3.  Rising Acceptance of Credit Cards

10.2.              Challenges

10.2.1.  Credit Card Payment Defaults

10.2.2.  High Interest and Charges

11.  Impact of COVID-19 on India Credit Card Market

11.1.              Impact Assessment Model       

11.1.1.  Key Segments Impacted

11.1.2.  Key Regions Impacted

12.  Market Trends & Developments

12.1.              Increasing Penetration of Co-Branded Cards

12.2.              Increasing Security

12.3.              Adoption of 5G

12.4.              Digital India Initiative

12.5.              Rising Contactless Payments

13.  Porter’s Five Forces Model

13.1.              Competition Rivalry

13.2.              Bargaining Power of Buyers

13.3.              Bargaining Power of Suppliers

13.4.              Threat of New Entrants

13.5.              Threat of Substitutes

14.  SWOT Analysis

14.1.              Strengths

14.2.              Weaknesses

14.3.              Opportunities

14.4.              Threats

15.  Policy & Regulatory Landscape

16.  India Economic Profile

17.  Competitive Landscape

17.1.              Company Profiles

17.1.1.  HDFC Bank Limited

17.1.1.1.      Company Details

17.1.1.2.      Product & Services

17.1.1.3.      Financials (As Reported)

17.1.1.4.      Digital Banking Services

17.1.1.5.      Key market Focus & Geographical Presence

17.1.1.6.      Recent Developments

17.1.1.7.      Key Management Personnel

17.1.2.  SBI Cards and Payment Services Limited

17.1.2.1.      Company Details

17.1.2.2.      Product & Services

17.1.2.3.      Financials (As Reported)

17.1.2.4.      Digital Banking Services

17.1.2.5.      Key market Focus & Geographical Presence

17.1.2.6.      Recent Developments

17.1.2.7.      Key Management Personnel

17.1.3.  ICICI Bank Limited

17.1.3.1.      Company Details

17.1.3.2.      Product & Services

17.1.3.3.      Financials (As Reported)

17.1.3.4.      Digital Banking Services

17.1.3.5.      Key market Focus & Geographical Presence

17.1.3.6.      Recent Developments

17.1.3.7.      Key Management Personnel

17.1.4.  Axis Bank Limited

17.1.4.1.      Company Details

17.1.4.2.      Product & Services

17.1.4.3.      Financials (As Reported)

17.1.4.4.      Digital Banking Services

17.1.4.5.      Key market Focus & Geographical Presence

17.1.4.6.      Recent Developments

17.1.4.7.      Key Management Personnel

17.1.5.  Citibank India

17.1.5.1.      Company Details

17.1.5.2.      Product & Services

17.1.5.3.      Financials (As Reported)

17.1.5.4.      Digital Banking Services

17.1.5.5.      Key market Focus & Geographical Presence

17.1.5.6.      Recent Developments

17.1.5.7.      Key Management Personnel

17.1.6.  Bank of Baroda

17.1.6.1.      Company Details

17.1.6.2.      Product & Services

17.1.6.3.      Financials (As Reported)

17.1.6.4.      Digital Banking Services

17.1.6.5.      Key market Focus & Geographical Presence

17.1.6.6.      Recent Developments

17.1.6.7.      Key Management Personnel

17.1.7.  RBL Bank Ltd.

17.1.7.1.      Company Details

17.1.7.2.      Product & Services

17.1.7.3.      Financials (As Reported)

17.1.7.4.      Digital Banking Services

17.1.7.5.      Key market Focus & Geographical Presence

17.1.7.6.      Recent Developments

17.1.7.7.      Key Management Personnel

17.1.8.  Kotak Mahindra Bank Limited

17.1.8.1.      Company Details

17.1.8.2.      Product & Services

17.1.8.3.      Financials (As Reported)

17.1.8.4.      Digital Banking Services

17.1.8.5.      Key market Focus & Geographical Presence

17.1.8.6.      Recent Developments

17.1.8.7.      Key Management Personnel

17.1.9.  Punjab National Bank

17.1.9.1.      Company Details

17.1.9.2.      Product & Services

17.1.9.3.      Financials (As Reported)

17.1.9.4.      Digital Banking Services

17.1.9.5.      Key market Focus & Geographical Presence

17.1.9.6.      Recent Developments

17.1.9.7.      Key Management Personnel

17.1.10.  IndusInd Bank

17.1.10.1.    Company Details

17.1.10.2.    Product & Services

17.1.10.3.    Financials (As Reported)

17.1.10.4.    Digital Banking Services

17.1.10.5.    Key market Focus & Geographical Presence

17.1.10.6.    Recent Developments

17.1.10.7.    Key Management Personnel

18.  Strategic Recommendations/Action Plan

18.1.              Key Focus Areas

18.1.1.  Target Region

18.1.2.  Target Type

18.1.3.  Target Credit Limit

19.  About Us & Disclaimer

Figures and Tables

Frequently asked questions

down-arrow

India experienced an average value of 3.39 percent during that time, with a minimum of 1.77 percent in 2011 and a maximum of 4.62 percent in 2021. 4.62 percent is the most recent estimate for 2021.

down-arrow

As per RBI in 2022, there are total of 53 credit card issuers operating in the Indian market. Some of the leading players within the Indian credit card market are 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, and IndusInd Bank.

down-arrow

Bank credit has been increasing by more than 15% since August 2022. Credit growth was 14.5% in the two weeks that ended on July 29, 2022. According to a report by Crisil Ratings, the second half of fiscal 2023 is likely to see a slowdown in the first half's higher growth in bank credit.

down-arrow

Credit cards have plenty of advantages to offer cardholders such as convenience, consumer protections, potentially free financing, travel perks and reservations, rewards, easy recordkeeping, potential to build credit, etc.

profile

Srishti Verma

Business Consultant
Press Release

Rising Digitalization is influencing the India Credit Card Market Growth

Feb, 2023

Rising ease of availing Credit Card, growing preference for digital transactions, increasing security, and surging focus upon digital India initiatives by the Government of India are influencing the