Global Market Research Reports : Ken Research: Indian Credit Card Industry

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With the onset of the coronavirus pandemic, contactless payments have seen a huge spurt in demand, which has resulted in increased issuance of debit as well as credit cards in the country. Over the last few years, the credit card industry has grown significantly in India with many developments happening in the space which include various innovations and changes in technology. Credit card issuers are also making efforts to bring more innovation and awareness to the segment that will contribute to the growth of India’s credit card market.
However, the adoption of credit cards has been fairly paltry across India, with only around 3% of the population having a credit card, which is way off the 30% benchmarks set by World Bank.
The Indian middle class mostly has a conservative stance towards credit card usage, with belief that high fees would ultimately lead to no benefit, and hence restrain themselves to use credit cards, which is definitely not a good sign. So, will the credit card industry in India sustain its positive growth in the future? Let’s find out.

1. The financial services sector has witnessed a massive shift towards digital technology; growth is primarily driven by retail loans and increasing penetration of credit cards in the economy

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2. The Credit Card Industry is currently in its growth stage, with Credit Card issuance growing at a roughly 20% CAGR over the last 5 years

3. Introduction of BNPL & increasing popularity of contactless payments post-pandemic among others is contributing to enhancing the adoption of Credit cards in the Indian Market

4. Adoption of Cashless Society coupled with adoption of usage of credit cards at Transit Systems are driving the Credit Card Industry Growth in India

5. To expand the consumer base and include NIP customers, Alternate Assessments like Employment letters, Fixed Deposits, Add-on cards, and Healthy bank balances are done

6. Though the Credit Card consumer base is at the expansion stage, there are a few challenges associated such as new regulations, and low penetration

7. However, Indian government is performing a major role in the journey of credit card adoption and helping the industry to thrive in the country with a CAGR of ~24% in the future.

Some of the Intelligence Curated by Ken Research in Credit-Card Space:

Asia Credit Cards Market Outlook to 2025 - By Commercial and Personal Credit Cards; By Transactions at ATM and POS Terminals; by Total Cards in Circulation; Transaction Value and Volume through Issuers and Operators; and by Countries (Japan, South Korea, India, China, Indonesia, Philippines, Singapore and Others
Turkey Cards and Payments Market Outlook to 2023 – Rapid Acceptance of TROY Cards and Contactless Cards Coupled with Rising Penetration of Credit Cards to Drive Market Growth
Saudi Arabia Cards and Payments Market Outlook to 2023 – Increasing Penetration of Islamic Credit Cards Coupled with Rising Preference for Online Shopping to Drive Market Growth
Brazil Cards and Payment Market Outlook to 2027F By Cards (Debit Cards, Credit Cards, Prepaid Cards), By Payment Terminals (POS and ATM's), By Payment Instruments (Credit Transfers, Direct Debit, Cheques, Cash and Payment Cards)
Malaysia Buy Now Pay Later Market Outlook to 2027F Driven by Digitalization, Rising Tech-Savvy Population, Increasing M&A Deals, Partnerships between BNPL players and Banks along with shifting preference towards BNPL

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Indian Credit Card Industry

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Credit Card Industry in India: The credit card industry in India is undergoing changes, with entry of players in the New-Generation cards as well as the Buy-Now-Pay-Later segment. Traditionally, the segment has been dominated by banks such as HDFC, SBI, ICICI and Axis. Newer business models such as New-Gen cards and BNPL are also making their way in India. The Indian payments industry has witnessed a dramatic shift in recent years in terms of the adoption of digitized technologies and innovations that process transactions within a matter of seconds. As we transition toward a more digital world, the role of credit cards is becoming even more important to facilitate online payments. The demand for online payments is ever growing and service providers are constantly innovating themselves to offer rewarding services to their users.

Adoption of Contactless Payments: The need for contactless payments has seen a spike, especially due to the pandemic, giving rise to increased demand for contactless payments. This in turn has led to increased issuance of credit and debit cards in the country. Moreover, the increasing demand for payments through wearables is also driving the credit card industry.

Buy Now, Pay Later: Many fintech players are now offering the buy now, pay later solutions allowing consumers to split their purchase into multiple payments. Consumers can use a BNPL card to make interest-free installment payments on any purchase. This convenience in payment method also attracts them to choose credit options for their payments over other modes of payment.

Rewarding experience: Several consumers switch to using credit cards to avail the benefits that these cards offer in terms of rewards or cashbacks. Today, rewards come as a standard on many credit cards in the form of co-branded cards, giving cardholders a reason to use them in the long-term. With exciting rewards in store for users, while making payments, customers are increasingly inclined towards using credit cards for making payments relating to their daily needs, shopping, travel, etc. This has called for increased partnerships between banks and FinTechs in order to meet the growing demands of their customers and issue cards to them that offers exceptional consumer experiences.

Fintech disruption: In the last few years, the credit space has seen some of the most popular offerings globally by neobanks. New players are entering the credit space in India and have started providing credit cards and digital lending via BNPL, EMI and other services. FinTechs are also focusing on bringing out co-branded cards with features and rewards dedicated to a segment. Banks are also exploring partnerships with FinTech players to acquire new customers to their platforms. FinTechs have opened up new avenues for the credit industry to tap into the large customer base without credit history.

The publication titled “Indian Credit Card Industry Outlook to 2027: Driven by adoption of contactless payments, shifting consumer preferences towards cashless mode of payments, rising disposable income and digitalization” provides a comprehensive analysis of the credit card industry in India. The report covers various aspects including credit card industry market size on the basis of revenue, market overview, genesis of the market, India credit card industry Cycle, overview of credit card services/ Products, ecosystem of entities in the Indian credit card industry, consumption expenditure and borrowing trends, emerging business models- Loan against Credit Cards, value chain analysis of credit cards, growth drivers, restraints and challenges, major trends and developments, alternative assessment for NIP (no-income-proof) customers for credit card offerings, collection risks associated with credit card, key metrics of credit card issuers in India, government initiatives in the Indian credit card industry, Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jan Dhan Awas Yojana (PMAY), collection risks associated with credit card, initiatives to promote access to data & innovation, regulatory sandbox, launch of India stack, recognising P2P lenders, increase in number of fintech start-ups, growth of digital lending, and evaluation of KYC norms. Insights on competitive landscape of credit card industry, company profile of major FinTechs players operating in the ecosystem on the basis of Company Overview, About the Company, Revenue Model, Funding and Investors, Key Features, Fee Structure, Product Offered, Strengths, Recent Developments, Key Takeaways and Financials- 2018,2019,2020 & 2021 and company profile of major Bank players operating in the ecosystem on the basis of Bank Overview, About the Company, Business Model, Product Offered, Key Features, Strengths, Recent Developments and Key Takeaways is also covered in the report. The report also covers Business Model Analysis of NewGen Cards, Business Model Analysis of BNPL Cards and Business Model Analysis of Loan EMI Cards. Further report also focuses on the Indian Credit Card Market Segmentation By Purpose of Usage, By Payment System Operator, By Type of Credit Card, By Average Ticket Size of Loan Disbursement . Indian Credit Card Market report concludes with projections for the future of the industry including forecasted industry size by revenue by 2027, and analysts’ take on the future highlighting the major opportunities.

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Key Segments Covered in Indian Credit Card Industry

Indian Credit Card Market

By Purpose of Usage

Shopping/ Non-ATM Purpose
ATM Withdrawals

By Payment System Operator

Regular VISA
Peer to Peer Mastercard
Rupay
America Express
Others

By Type of Credit Card

Personal Credit Card
Commercial Credit Card

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By Average Ticket Size of Loan Disbursement

Less than Rs. 25,000
Between Rs 25,000- Rs. 50,000
Between Rs. 50,000- Rs. 100,000
More than Rs. 100,000

Business Model Analysis of NewGen Cards
Business Model Analysis of BNPL Cards
Business Model Analysis of Loan EMI Cards

Overview of India Credit Card Industry

Comparison of Indian Credit Card Industry with Other Countries
Value Chain Analysis of Credit Cards
Scope for the Credit card in Semi-Urban and Rural India

Key Target Audience

Credit Card Issuing Banks
New Gen Credit Cards Players
Traders Loan EMI Credit Cards Players
Banking Institutions Payment System Operators
Regulatory Bodies BNPL Credit Cards Players
FinTechs
Various International Digital Lending Platforms and Players
New Entrants in Credit Card Space
Potential Credit Card Users

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Time Period Captured in the Report:

Historical Period: FY’2017-FY’2022
Forecast Period: FY’2022-FY’2027F

Indian Credit Card Industry Players/Ecosystem

Credit Card Issuing Banks

HDFC Bank
SBI
ICICI
Axis Bank
IDFC Bank
RBL
IndusInd Bank
Citibank
Bank of Baroda
Standard Chartered Bank
Kotak Bank
South Indian Bank

New Gen Credit Cards

Slice
OneCard
UniPay Card

Loan EMI Credit Cards

Bajaj Finserv
Tata Capital
HDFC EasyEMI
Home Credit India

Cards BNPL Credit Cards

Simpl
ZestMoney
LazyPay
CASHe
PostPe
Amazon Pay Later
Flipkart Pay Later
Ola Postpaid
Paytm Postpaid
Flexmoney
ICICI PayLater

Payment System Operators

Visa
Mastercard
American Express
Rupay
UPI

Key Topics Covered in the Report

Overview and Genesis of Indian Credit Card Market
India Credit Card Industry Cycle
Overview of Credit Card Services/ Products
Consumption Expenditure and Borrowing Trends
Emerging business models- Loan against Credit Cards
Socio-Demographic Outlook of India
Economic Outlook of India
Bank Loan Rates

Financing Options in India

Overview of India's Banking Industry
Digital Payment Growth v/s Cash Payment Growth
India Credit Card Industry Introduction
Comparison of Indian Credit Card Industry with Other Countries
Ecosystem of Entities in the Indian Credit Card Industry
Value Chain Analysis of Credit Cards
India Credit Card Market Sizing on the basis of number of credit cards outstanding, Number of Credit Cards Issued by Issuer Bank. Credit Card Transaction by Volume & Value and Annual Credit Card Spend and Monthly Transactions
India Credit Card Market Segmentation (By Purpose of Usage, By Payment System Operator, By Type of Credit Card, By Average Ticket Size of Loan Disbursement).
Business Model Analysis of NewGen Cards

Cross Comparison of Major Players in the NewGen Cards Segment

Business Model Analysis of BNPL Cards

Cross Comparison of Major Players in the BNPL Cards Segment

Business Model Analysis of Loan EMI Cards

Cross Comparison of Major Players in the Loan EMI Cards Segment

Trends and Developments
Growth Drivers of the Indian Credit Card Industry
Restraints and Challenges
Alternative Assessment for NIP (No-Income-Proof) Customers for Credit Card Offerings
Collection risks associated with credit card
Key Metrics of Credit Card Issuers in India
Government Initiatives in the Indian Credit Card Industry
Pradhan Mantri Jan Dhan Yojana (PMJDY)
Pradhan Mantri Jan Dhan Awas Yojana (PMAY)
Initiatives to Promote Access to Data & Innovation
Regulatory Sandbox
Launch of India Stack
Recognising P2P Lenders
Increase in number of Fintech start-ups
Growth of Digital Lending,
Credit Growth in Rural India
Evaluation of KYC Norms

Company profile of major Bank players operating in the ecosystem (Bank Overview, About the Company, Business Model, Product Offered, Key Features, Strengths, Recent Developments and Key Takeaways)
Company profile of major FinTechs players operating in the ecosystem (Company Overview, About the Company, Revenue Model, Funding and Investors, Key Features, Fee Structure, Product Offered, Strengths, Recent Developments, Key Takeaways and Financials)
Analyst Recommendations
Industry Speaks

For More Insights On Market Intelligence, Refer To The Link Below: –

Indian Credit Card Industry

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India Buy Now Pay Later Market Outlook to 2026

India ATM Managed Services Outlook to 2026

Asia Credit Cards Market Outlook to 2025