Credit Card Market Size in India | Market Forecast 2025

Q: What is driving the increasing demand for credit cards in India?

Greater access to credit, online shopping growth, and contactless payment habits are key drivers behind the credit card boom.

Q: Which segment leads the India credit card market?

Private banks lead with strong urban penetration, while fintech-backed issuers are growing rapidly among younger consumers.

Q: What are the major challenges faced by the India credit card market?

High competition, credit risk in unsecured lending, and cybersecurity threats remain major industry concerns.

Q: How is technology shaping the future of the India credit card industry?

AI-based fraud detection, mobile-first card management, and seamless digital onboarding are defining the future of credit access.

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Credit Card Market Size in India | Market Size & Consumer Trends 2025

Code: MTA4516

Publication Date: Jun 2025

What is the India Credit Card Market Size?

According to 绿帽社 internal database and industry insights, the India credit card market is projected to grow at a compound annual growth rate of 11.7% during the forecast period of 2025鈥�2031.

This growth is fueled by the expanding digital ecosystem, increased financial inclusion, and the growing preference for contactless payments, EMI options, and lifestyle-based credit offerings.

Key Growth Factors

Increasing urbanization and aspirational spending patterns
Rise of e-commerce platforms and digital-first payment preferences
Widespread issuance of co-branded and rewards-based credit cards
Fintech collaboration enabling easier onboarding and access to credit
RBI-led push for secure digital transactions and credit accessibility
Rapid growth of credit card usage in Tier 2 and Tier 3 cities

Credit Card Market Trends

India credit card market is expected to witness transformative trends such as AI-based credit profiling, virtual card issuance, and embedded finance offerings. The introduction of its BNPL characteristics, card controls on the app, and lifestyle-oriented rewards plans is altering the user experience. Banks and fintech firms are targeting younger demographics through digital campaigns and simplified eligibility processes.

Emerging Developments in the India Credit Card Market

The most recent advancements in the India credit card market area comprise the implementation of the UPI-enabled credit purchases, tokenization to give secure transactions, and the self-service options offered by the application such as an immediate limit increase or personalized incentives. The virtual cards are there and tap-to-pay smartcards, and are gaining much traction especially among the digitally literate consumers. All the efforts of regulatory authorities towards the greater transparency alongside the deployment of the AI to the risks modeling will probably cause the surge in customer experience and creditworthiness assessment in the upcoming years.