More people in India are turning to credit and charge cards for everyday spending, and this shift is set to push the market past $300 billion in 2025. The total value of payments made through credit and charge cards is expected to grow by 14% in 2025, reaching ₹25.4 trillion ($303.9 billion). This is because many people now prefer digital payments over cash, according to a report by GlobalData, a leading data and analytics company.
India saw a strong jump in credit card spending in recent years. In 2023, it went up by nearly 28%, and in 2024, by over 15%. Even with global uncertainty like the recent US tariffs, the trend is expected to continue. Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, explained the shift, “Despite lower penetration than debit cards, credit and charge cards are highly preferred for payments. Payment frequency for these cards stood at 54.2 times a year in 2025, much higher than for debit cards. With the expansion of the middle-class workforce, increasing incomes, and heightened awareness of credit card benefits fueled by banks’ promotional campaigns, the adoption and utilisation of credit cards are on the rise.”
One reason credit cards are becoming popular is the extra benefits cashback, discounts, and rewards. In 2024, credit and charge cards made up 81% of the total value of card payments in the country. Another factor is flexibility. Many banks now let people convert big purchases into easy monthly payments. For instance, Axis Bank allows card users to split payments over 6 to 24 months. HDFC Bank goes a step further with its Smart EMI plan, offering instalment options from 6 to 48 months.
Online shopping is also pushing this growth. In 2024, credit and charge cards were used for 11.2% of all e-commerce spending in India. The perks attached to online payments with these cards are helping drive the trend. In June 2025, the Reserve Bank of India reduced the main interest rate by 0.5%, lowering it to 5.5%. This could mean lower interest on loans, including those on credit cards. With inflation easing and the economy doing well, more people may be encouraged to take credit, giving another boost to the market.
Sharma said, “Looking ahead, India’s credit and charge card payments market is poised for continued expansion. The ongoing shift from cash to electronic payments, availability of pricing benefits on credit and charge cards and increasing merchant acceptance are expected to further boost credit and charge card usage. The credit and charge card market are expected to grow at a CAGR of 11.5% between 2025 and 2029 to reach INR39.3 trillion ($470.1 billion) in 2029.
