The number of credit cards in India is expected to reach 200 million with a CAGR of 15 per cent, highlighted a report by PwC.

The report stated that the credit card industry has experienced significant expansion, doubling the number of credit cards issued over the past five years. This momentum is expected to continue, with the market likely to replicate this growth in the coming years, the report noted.

“The credit card market in India is expected to double its cards in force by FY28-29, reaching 200 million cards. The industry, which has seen a 100 per cent increase in issued cards over the past five years, is anticipated to replicate this growth within the next five financial” said the report.

Alongside the increase in credit card issuance, the report added that the credit card industry has seen a substantial rise in transactional activity. Transaction volumes have grown by 22 per cent, while transaction values have surged by 28 per cent. The report attributes this growth to the introduction of new products, innovative offerings, and the expansion of customer segments.

Also read | BANK HOLIDAY ON SEPTEMBER 4: ALL BANKS WILL REMAIN CLOSED IN ASSAM ON WEDNESDAY

However, the report also noted a decline in debit card usage. Debit card transactions have decreased both in volume and value, reflecting a shift in consumer preferences. In FY23-24, the transaction volume for debit cards dropped by 33 per cent compared to the previous year, and spending on debit cards decreased by 18 per cent year-on-year.

The report said, “Debit cards in the country have seen a muted growth in terms of the number of cards issued in the year and the volume and value of the debit plastic took a significant hit during FY 23-24”.

This decline is attributed to the growing popularity of the Unified Payments Interface (UPI), which offers ease of use and has become a preferred payment method for small to medium merchants due to its zero Merchant Discount Rate (MDR).

“This degrowth can be attributed to the inclination towards UPI due to ease of use and small to medium merchants pushing for UPI due to 0 per cent MDR” the report stated.

For more updates, click here.