The credit and charge card payments market in India is projected to experience significant growth in 2025, with an expected increase of 14 per cent to reach Rs 25.4 lakh crore ($303.9 billion). This expansion is driven by rising consumer preference for non-cash transactions and favourable economic conditions.

According to GlobalData, India witnessed a 27.9 per cent growth in credit and charge card payments value in 2023, followed by a 15.3 per cent increase to Rs 22.3 lakh crore ($266.5 billion) in 2024. This upward trajectory is anticipated to continue, despite global uncertainties.

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, noted the increasing popularity of credit and charge cards over debit cards, stating: “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—fuelled by banks’ promotional campaigns—the adoption and utilisation of credit cards are on the rise.”

The dominance of credit and charge cards in transaction value, accounting for 81 per cent of total payment card transaction value in 2024, is attributed to value-added benefits like discounts and cashback. These incentives have encouraged the use of such cards for higher-value transactions across the country.

Facilitating this growth further is the provision of instalment payment options by major banks in India. For instance, Axis Bank and HDFC Bank offer credit card holders the flexibility to convert purchases into monthly instalments, making it easier for consumers to manage large-ticket expenses.

E-commerce payments have also significantly contributed to this trend, representing 11.2 per cent of total e-commerce transaction value in 2024. The benefits of using credit and charge cards for online transactions, such as security and ease of use, continue to attract consumers.

In a move expected to stimulate further growth, the Reserve Bank of India reduced the key policy rate by 50 basis points to 5.50 per cent in June 2025. This reduction is likely to lower interest rates on loans, including credit cards, making credit more accessible to consumers.

Looking forward, Sharma commented on the market’s potential: “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 market is expected to grow at a CAGR of 11.5 per cent between 2025 and 2029 to reach Rs 39.3 lakh crore ($470.1 billion) in 2029.