India’s Credit Card Growth in 2024: A 10% Surge in Issuance and Spending Trends

In December 2024, the total number of credit cards in India reached an impressive 108.06 million, reflecting a 10.4% increase compared to December 2023. The report compiled by Worldline India highlights the growing popularity of credit cards among Indian consumers, driven by beneficial financial products and promotional offerings from various banks. The findings show that in an era focused on cashless transactions, credit cards are becoming a favored choice for managing expenses.

Key Players in the Credit Card Market

As the credit card market expands, several key banks have emerged as leading issuers:

• **HDFC Bank**
• **State Bank of India (SBI)**
• **ICICI Bank**
• **Axis Bank**
• **RBL Bank**

These institutions accounted for a substantial share of the credit card issuance, with private sector banks issuing 71% of the total cards. In contrast, public sector banks issued about 24%, reflecting a notable trend towards private banking products among consumers. Meanwhile, 64% of debit cards were issued by public sector banks, indicating a split in consumer preferences for credit versus debit products.

Cards Issued by Different Types of Banks

The distribution of card issuance demonstrates the evolving landscape of the Indian banking sector:

• Private Sector Banks: 71% of total credit cards
• Public Sector Banks: 24% of total credit cards
• Others (Payment Banks, Small Finance Banks, Foreign Banks): remaining 5%

Transaction Volume and Growth Trends

The volume of card transactions in the second half of 2024 was 4.1 billion, indicating an 11% growth from the previous year. In terms of individual card types, the trends reveal significant shifts:

• Credit Card Transactions: 2.42 billion, a remarkable 36% increase
• Debit Card Transactions: 0.82 billion, a notable 29% decline
• Prepaid Card Transactions: 0.86 billion, an 11% growth

This data signals the changing dynamics of consumer spending, with credit cards gaining traction while debit cards are seeing a decline. These trends reflect not only the adoption of credit cards for convenience and benefits but also shifts in consumer behavior amidst a growing digital economy.

Value of Card Transactions

In terms of monetary value, the overall amount transacted via cards in the second half of 2024 reached ₹13.64 trillion, an 8% increase from the same period in 2023. Credit card transactions specifically accounted for ₹10.76 trillion, driven by a 14% uptick compared to the previous year.

• Debit Cards: Transaction value fell to ₹2.55 trillion, a drop of 16%
• Prepaid Cards: Grew to ₹334 billion, an impressive 38% increase

The average ticket size (ATS) for all cards in the second half of 2024 was ₹2,645, reflecting a 4% decrease from the previous year. Here’s the breakdown of ATS by card type:

• Credit Cards: ₹4,436, a 16% decrease
• Debit Cards: ₹3,113, an 18% increase
• Prepaid Cards: ₹388, a 25% increase

Trends in Point of Sale (PoS) Transactions

In terms of transactions made via Point of Sale (PoS) terminals, the value hit ₹5.83 trillion, marking a 10% increase from the previous year. Specifics on different cards include:

• Credit Cards: Transactions valued at ₹4.07 trillion, a healthy 24% growth
• Debit Cards: Transaction value fell to ₹1.70 trillion, a 14% decline
• Prepaid Cards: ₹56 billion in transactions, a growth of 8%

The transaction volume for online purchases surged by 21% year-on-year to 1.83 billion transactions in the second half of 2024. Specifically, credit card transactions surged by 38%, while debit cards saw a significant decrease of 33%. Prepaid cards, however, continued to show resilience with a growth of 27%.

Future Outlook for Credit Card Usage in India

As we look ahead, it’s clear that credit cards are set to maintain their upward trajectory in the Indian financial landscape. Factors contributing to this trend include:

• Increasing digital literacy among consumers
• Enhanced promotional offers by banks
• A shift towards cashless transactions amid evolving economic conditions

This momentum indicates that credit cards will continue to evolve as a crucial financial tool for millions of Indians, reflecting ongoing changes in retail purchasing behaviors and financial management strategies.

(Disclaimer: Mint has a tie-up with fintechs for providing credit; candidates will need to share their information if they apply. These partnerships do not influence our editorial content. This article intends to educate and promote awareness concerning credit needs such as loans, credit cards, and credit scores. Mint does not advocate for the use of credit due to associated risks, such as high interest rates and hidden fees. We recommend consulting certified experts before taking any credit.)

Conclusion

The growth of credit card usage in India during 2024 underlines a significant shift in consumer financial habits, with an impressive increase in both issuance and transaction volumes. As banks continue to innovate and adjust their offerings to suit the needs of a rapidly changing market, credit cards are likely to become an even more integral component of India’s cashless economy.

Keywords

credit cards, credit card growth, Worldline India, debit cards, PoS transactions, banking trends, Indian economy, consumer finance, economic report 2024, digital payments

Hashtags

#CreditCards #Finance #IndiaEconomy #DigitalPayments #BankingTrends #WorldlineIndia #ConsumerFinance #CashlessEconomy

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