India's credit and charge card payment sector is set to surpass Rs. 25,91,700 crore (US$ 300 billion) by 2025: Report

India’s credit and charge card payments sector is set for significant expansion, with the transaction value anticipated to increase by 14% in 2025 to Rs. 25,40,000 crore (US$ 294 billion), as stated in a report from GlobalData. This growth is a result of a 15.3% increase in 2024, fueled by a rise in consumer demand for cashless payments, improved income levels, and marketing initiatives from banks. Although their penetration is lower than that of debit cards, credit and charge cards represented 81% of the total transaction value for payment cards in 2024, indicating their frequent use, projected to hit 54.2 times per year in 2025. Cashback, discounts, and Equated Monthly Instalment (EMI) options are enhancing their appeal, especially for e-commerce transactions, which accounted for 11.2% of all online payments in 2024. Credit card expenditures dropped 3.6% month-over-month in June 2025 to Rs. 1,83,000 crore (US$ 21.18 billion), the general perspective stays optimistic. Overall card expenditures are expected to increase in the next few months, bolstered by the holiday season and a broader rebound in consumption during FY26. IDBI Capital indicates that lenders are expected to emphasize credit quality and concentrate on cross-selling to current customers instead of pursuing aggressive new acquisitions. By May 2025, India possessed 111.2 million active cards, reflecting a 7% year-over-year increase. Driven by persistent consumer demand, increasing digital usage, and better merchant infrastructure, the credit and charge card sector is projected to expand at a CAGR of 11.5% from 2025 to 2029, attaining Rs. 39,30,000 crore (US$ 454.91 billion) by the year 2029.