The card payment market in India is poised to register 9.4% growth in 2025e, reaching INR30.1 trillion ($359.7 billion), driven by rising consumer spending and growing consumer preference for electronic payments, reveals GlobalData, a leading data and analytics company.
GlobalData’s Payment Card Analytics reveals that card payments in India registered a healthy compound annual growth rate (CAGR) of 19.5% between 2020 and 2024 to reach INR27.5 trillion ($328.9 billion) in 2024, driven by the rise in consumer spending.
Shivani Gupta, Lead Banking and Payments Analyst at GlobalData, comments: “India, which was traditionally a cash-driven society, has made significant progress in last one decade driven by a growing banked population, increasing consumer preference for electronic payments, and an improving payment infrastructure, with card payments being one the beneficials.
“This growth has been bolstered by the government’s efforts to promote financial inclusion and electronic payments. Initiatives such as the launch of low-cost bank accounts and Rupay cards under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) program, as well as the reduction in merchant service fees, have incentivized consumers and merchants to gradually transition from cash to card-based payments.”
Debit cards remain the most held card type in India. However, they are predominantly used for cash withdrawals rather than payments. In 2024, debit cards only represented a 19.0% share of the overall card payment value. The low usage can partially be attributed to the wide adoption of UPI-based payment apps, which enable users to make payments directly from their bank account using their smartphones, eliminating the need to carry a physical debit card.
Credit and charge cards, on the other hand, accounted for 81.0% share of the overall card payment value in 2024. Indians are increasingly opting for credit and charge cards when making payments, with the frequency of payments per card standing at 44.4 times in 2024, compared to 1.7 times for debit cards. This is mainly due to the value-added benefits associated with these cards, such as flexible payment options and reward programs.
The rise in e-commerce payments also contributed to this growth as payment cards are the widely preferred payment tools for e-commerce purchase. Debit, credit and charge cards collectively accounted for over one-fifth (20.8%) of the total e-commerce transaction value in 2024, according to GlobalData’s 2024 Financial Services Consumer Survey*.
Contactless payments are also gradually gaining momentum in India, with banks and scheme providers increasingly promoting this technology, though it is far from mass adoption.
In June 2025, Axis Bank partnered with the Indian wearable brand boAt and Mastercard to introduce Tap and Pay NFC payments. This innovative solution enables users to make contactless payments at POS terminals by connecting their debit and credit cards to boAt’s Wave Fortune smartwatch.
Despite growth in card payments, the overall card payment frequency remains at lower end at six times in 2024. This is mainly due to comparatively lower card penetration, limited merchant acceptance especially in rural and remote areas as well high preference for UPI-based mobile payments among consumers and merchants.
Gupta concludes: “The upward trajectory of India’s card payments market is expected to persist in the coming years, driven by the increasing adoption of payment cards, gradual adoption of contactless technology, and the convenience of electronic payments and constant push from government. Subsequently, the card payments market is anticipated to increase at a CAGR of 9.9% between 2025 and 2029 to reach INR43.9 trillion ($524.6 billion) in 2029.”
*GlobalData’s 2024 Financial Services Consumer Survey was carried out in Q2 2024. Approximately 67,292 respondents aged 18+ were surveyed across 41 countries.
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