As per MRFR analysis, the India Credit Card Market Size was estimated at 121.78 (USD Billion) in 2023.
The India Credit Card Market Industry is expected to grow from 125.23(USD Billion) in 2024 to 175 (USD Billion) by 2035. The India Credit Card Market CAGR (growth rate) is expected to be around 3.089% during the forecast period (2025 - 2035).
India Credit Card Market is experiencing substantial development as a result of the growing dependence of consumers on digital payments and the transition to a cashless economy. Urbanization, a youthful population, and increasing disposable incomes are all contributing factors to the increased adoption of credit cards. The Digital India campaign, a government initiative that promotes digital transactions, has increased consumer confidence, resulting in a broader customer base for credit cards. The pandemic has accelerated the trend toward contactless payments, compelling financial institutions to improve and advertise contactless credit card options. Opportunities are arising in niche segments, including the burgeoning e-commerce market and millennials.
As an increasing number of younger consumers enter the financial ecosystem, card issuers are emphasizing the development of products that are specifically tailored to their interests, including lifestyle benefits, reimbursement offers, and travel rewards. Furthermore, the expansion of credit card penetration in tier-II and tier-III cities presents a growth opportunity, as financial inclusion initiatives gain momentum and a greater number of individuals gain access to banking services. Financial technology (fintech) collaborations are becoming increasingly critical in the Indian credit card industry, as evidenced by recent trends. Innovative credit solutions, such as customer-friendly credit limits and instant approval procedures, are being provided by fintech companies through the use of technology.
Companies can enhance their risk assessment and personalized offerings by incorporating data analytics and artificial intelligence. Additionally, the growing consciousness of responsible credit behavior is encouraging consumers to exercise caution when using credit cards, thereby fostering a more stable credit market in India. Traditional banks and fintechs will be required to adjust in order to remain competitive and satisfy the evolving requirements of Indian consumers as the landscape continues to develop.
Fig 1: India Credit Card Market Overview
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Urbanization in India has been accelerating, with the urban population expected to reach 600 million by 2031, according to the Ministry of Housing and Urban Affairs. This massive transition is significant as urban residents generally exhibit higher purchasing power and a greater inclination to adopt credit instruments like credit cards. The increase in consumer spending power is further supported by the Reserve Bank of India's efforts to promote digital payments.
As the trends towards urbanization continue, the India Credit Card Market Industry is likely to see substantial growth, driven by the rising demand for credit facilities among urban residents who seek convenience and flexibility in their financial transactions. Established banks and financial institutions are increasing their outreach and marketing efforts to encourage urban consumers to opt for credit cards, reflecting a strong influence on market dynamics.
The e-commerce sector in India has grown exponentially, with sales expected to reach approximately USD 100 billion by 2025, as reported by the Ministry of Commerce and Industry. This boom in e-commerce is significantly driving the need for credit cards, as consumers prefer cashless transactions for online shopping. The India Credit Card Market is benefiting from the rise in partnerships between credit card issuers and e-commerce platforms, offering incentives such as cashback and discounts on online purchases.
Major players like Flipkart and Amazon have aligned with financial institutions to provide attractive offers for credit card users, which boosts market penetration and encourages consumers to utilize credit cards for their online shopping needs.
The Government of India has been actively promoting digital payment systems through campaigns such as Digital India and initiatives like the Unified Payments Interface (UPI). Reports indicate that UPI transactions grew by over 100% in value, reaching more than INR 1,000 trillion in the last fiscal year. Such initiatives encourage the adoption of cashless transactions, making credit cards a favorable option among consumers. The India Credit Card Market is poised for growth as the government's push towards digital literacy and accessibility increases the number of consumers comfortable with using credit cards as part of their financial toolkit.
Financial institutions are also responding by launching digital-first credit products catered to a tech-savvy audience, further enhancing competition in the market.
Financial literacy campaigns initiated by various banks and organizations have shown promising results, with surveys suggesting that around 70% of the population is now aware of financial products, compared to just 16% a decade ago. This increase in financial knowledge signifies a growing understanding of credit cards and their benefits. The India Credit Card Market Industry is directly influenced as consumers become more aware of how to manage credit effectively, leading to an increase in credit card applications.
Banks and fintech companies are leveraging this trend by offering tailored financial education programs to highlight the advantages of credit cards, including rewards and transparency in fees, which encourage adoption among novice consumers.
The India Credit Card Market, particularly focusing on the Card Type segment, showcases a diverse landscape with various products catering to different consumer needs. Standard Credit Cards remain a dominating offering, appealing to a wide audience due to their straightforward features and accessibility, which makes them a preferred choice for everyday use. In contrast, Rewards Credit Cards have gained popularity among consumers who seek to earn benefits such as cash back, points, or travel rewards, thereby driving customer loyalty and engagement, making them a significant part of the market dynamics.
Secured Credit Cards are crucial for individuals looking to build or improve their credit scores, as they provide a route for first-time users or those with poor credit history to access credit facilities by requiring a security deposit. This segment promotes financial inclusion, especially for lower-income individuals looking to establish a credit profile. Lastly, Business Credit Cards serve a vital role in the entrepreneurial ecosystem of India, enabling businesses to manage expenses efficiently and access various financial resources, thus supporting the growing number of small and medium enterprises in the country.
With a balanced mix of usage across these card types, the India Credit Card Market not only reflects consumer trends but also showcases opportunities for market players to innovate and tailor products to meet evolving consumer preferences. Factors such as rising disposable incomes, increasing digital payment adoption, and the burgeoning online shopping metaverse continue to drive growth in this segment, reflecting the changing landscape of consumer behavior in India. As a result, understanding the India Credit Card Market segmentation related to Card Type is essential for stakeholders looking to navigate and capitalize on this thriving industry.
Fig 2: India Credit Card Market Insights
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The India Credit Card Market is witnessing substantial growth driven by the various applications of credit cards in daily financial transactions. The application segment plays a vital role in the market, with areas such as online shopping, travel and entertainment, retail purchases, and bill payments being key drivers in enhancing consumer spending. The rise of e-commerce in India has significantly boosted online shopping, where a large portion of consumers prefer using credit cards for their convenience and rewards. Travel and entertainment applications showcase a growing trend among Millennials and Gen Z, as they seek experiences and utilize credit benefits for booking flights and accommodations.
Retail purchases continue to dominate as more merchants adopt card payment systems, encouraging consumers to switch from cash to credit. Additionally, bill payments through credit cards are becoming increasingly popular, allowing consumers to manage cash flows efficiently. These trends highlight the significant role each application plays in shaping the India Credit Card Market landscape and reflect the changing consumer behavior towards digital and contactless payments. As India continues to digitize its economy, the importance of these applications is only expected to rise in the coming years, further driving growth in this segment.
The Payment Method segment of the India Credit Card Market reflects a dynamic shift towards modern payment solutions amid the country's digital transformation. With a large population embracing technology, Contactless Payments have gained traction, allowing consumers to make transactions quickly and conveniently, minimizing wait times and enhancing user experience. This method is particularly popular among younger demographics seeking seamless financial interactions. Chip-and-PIN Payments continue to play a critical role in enhancing security and reducing fraud, which is essential in fostering consumer trust in the credit card ecosystem.
Meanwhile, Magnetic Stripe Payments, while still present, are gradually being overshadowed by more secure alternatives due to rising awareness about cybersecurity. The Indian government's push towards a cashless economy has further propelled these payment methods, making them integral to the overall growth of the India Credit Card Market. The segmentation not only reflects consumer preferences but also highlights the need for retailers to adapt to these evolving methods to remain competitive in the fast-paced market landscape. As digital literacy improves and infrastructure develops, these payment methods are expected to be the backbone of financial transactions in India.
The Customer Segment of the India Credit Card Market showcases a diverse landscape comprising Individuals, Small Businesses, and Corporates, each contributing uniquely to market dynamics. Individuals form a substantial part of the credit card landscape, reflecting the rising consumer trend towards cashless transactions, driven by growing digital literacy and convenience. Small Businesses are increasingly utilizing credit cards to manage cash flow effectively, seize growth opportunities, and access credit facilities that enhance their operational capabilities.
Corporates, on the other hand, leverage credit cards for expense management and streamlining business expenditures, often developing tailored card solutions to meet their specific needs. The popularity of contactless payments and e-commerce has further fuelled credit card adoption across these segments. The advent of innovative card features such as rewards programs and personalized offers has led to heightened competition amongst issuers, targeting these distinct consumer bases. Overall, the segment plays a crucial role in supporting economic growth in India, with each category presenting unique opportunities for financial institutions focusing on tailored services and enhanced customer engagement strategies.
The India Credit Card Market has experienced significant growth in recent years, with a variety of financial institutions competing to capture a share of the expanding customer base. The market is characterized by increased consumer awareness regarding credit facilities, a growing middle-class population, and enhanced digital payment systems. As more individuals in India opt for credit cards for everyday purchases and expenses, providers are working to develop innovative products, attractive reward schemes, and improved customer service. This competitive landscape is marked by ongoing efforts to differentiate offerings through technology integration, partnerships, and promotional campaigns, as well as a focus on enhancing customer experience and building brand loyalty. The promotional strategies employed by different banks and financial institutions also play a crucial role in influencing consumer choices, driving competition, and shaping the overall market dynamics.
ICICI Bank, a prominent player in the India Credit Card Market, has established a strong market presence backed by extensive offerings and a reputed brand name. Known for its diverse range of credit cards, ICICI Bank caters to various customer segments from entry-level to premium users by providing tailored products with varied rewards and features. The bank's robust digital infrastructure allows for seamless application processes, enhanced security for users, and a convenient online management platform. Its strengths lie in its widespread branch network, efficient customer service, and the ability to deliver personalized communication through data analytics. In a rapidly evolving market, ICICI Bank's consistent efforts toward enhancing customer engagement and offering unique promotional schemes set it apart from its competitors, making it a formidable force in the credit card market.
Bajaj Finserv is also a significant contributor to the India Credit Card Market, focusing on innovative financial solutions designed to meet the evolving demands of Indian consumers. The company offers a variety of key credit card products, including cards that provide unique benefits such as reward points, cashback, and interest-free payment options. Bajaj Finserv has built a robust market presence through strategic marketing and partnerships, helping to establish its reputation in the lending space. The company's strengths include a strong focus on customer-centric solutions, a user-friendly online application platform, and an extensive distribution network allowing for quick responses to customer needs. Bajaj Finserv has also explored strategic mergers and acquisitions that have broadened its service offerings and expanded its reach within the market. By leveraging technology and introducing new benefits tailored for the Indian consumer, Bajaj Finserv continues to strengthen its position in the competitive landscape of the credit card market.
ICICI Bank
Bajaj Finserv
Citibank
State Bank of India
Bank of Baroda
American Express
Kotak Mahindra Bank
HSBC
Punjab National Bank
IndusInd Bank
Standard Chartered
Axis Bank
HDFC Bank
YES Bank
RBL Bank
The India Credit Card Market has seen significant developments recently, with notable activities among major players. ICICI Bank has launched new credit cards catering to diverse customer needs, particularly focusing on cashback and rewards programs. Bajaj Finserv has expanded its offerings to include premium credit solutions targeting affluent consumers. Citibank, on the other hand, has made headlines by investing in technology to enhance customer experience and strengthen fraud detection systems.
Furthermore, the State Bank of India and Bank of Baroda are collaborating on initiatives to promote digital payments, aiming to capture the growing e-commerce market. In terms of mergers and acquisitions, American Express has acquired a stake in a fintech company, enhancing its digital payment capabilities in India as of August 2023. Meanwhile, HDFC Bank continues to see a substantial increase in market valuation, reflecting its dominance in the credit card space. Such competitive dynamics and innovations signal a thriving landscape for credit card providers in India.
Standard Credit Cards
Rewards Credit Cards
Secured Credit Cards
Business Credit Cards
Online Shopping
Travel and Entertainment
Retail Purchases
Bill Payments
Contactless Payments
Chip-and-PIN Payments
Magnetic Stripe Payments
Individuals
Small Businesses
Corporates
| Report Attribute/Metric | Details |
| Market Size 2023 | 121.78(USD Billion) |
| Market Size 2024 | 125.23(USD Billion) |
| Market Size 2035 | 175.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 3.089% (2025 - 2035) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | ICICI Bank, Bajaj Finserv, Citibank, State Bank of India, Bank of Baroda, American Express, Kotak Mahindra Bank, HSBC, Punjab National Bank, IndusInd Bank, Standard Chartered, Axis Bank, HDFC Bank, YES Bank, RBL Bank |
| Segments Covered | Card Type, Application, Payment Method, Customer Segment |
| Key Market Opportunities | Digital payment integration, increasing millennials adoption, E-commerce growth acceleration, Enhanced rewards programs, Financial literacy initiatives |
| Key Market Dynamics | growing middle class, increasing digital payments, competitive offers and rewards, rising merchant acceptance, regulatory support, and innovations |
| Countries Covered | India |
Frequently Asked Questions (FAQ) :
By 2035, the India Credit Card Market is expected to be valued at 175.0 USD Billion.
In 2024, the market value of the India Credit Card Market is projected to be 125.23 USD Billion.
The India Credit Card Market is expected to grow at a CAGR of 3.089% during the period from 2025 to 2035.
The Standard Credit Cards segment is projected to dominate with a market value of 60.0 USD Billion by 2035.
Major players in the India Credit Card Market include ICICI Bank, Bajaj Finserv, Citibank, and State Bank of India among others.
The market size for Rewards Credit Cards is expected to reach 50.0 USD Billion by 2035.
The Business Credit Cards segment is valued at 25.23 USD Billion in the year 2024.
By 2035, the market size for Secured Credit Cards is expected to reach 30.0 USD Billion.
The market may face challenges such as increasing competition and evolving customer preferences.
There are ample opportunities for growth through digital payment strategies and enhancing customer engagement.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Analyst Explore the profile of garvit vyas, one of our esteemed authors at market research future, and access their expert research contributions in the field of market research and industry analysis
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
