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Market Research Report
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967219

India Cards and Payments - Opportunities and Risks to 2025

Published: | GlobalData | 89 Pages | Delivery time: 1-2 business days

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India Cards and Payments - Opportunities and Risks to 2025
Published: February 17, 2022
GlobalData
Content info: 89 Pages
Delivery time: 1-2 business days
  • Description
  • Table of Contents

GlobalData's 'India Cards and Payments - Opportunities and Risks to 2025' report provides detailed analysis of market trends in the Indian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, cards, credit transfers, cheques, and direct debits during the review-period (2017-21e).

The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2021e-25f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together GlobalData's research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

This report provides top-level market analysis, information and insights into the Indian cards and payments industry, including -

  • Current and forecast values for each market in the Indian cards and payments industry, including debit, credit, and charge cards.
  • Detailed insights into payment instruments including cash, cards, credit transfers, cheques, and direct debits. It also, includes an overview of the country's key alternative payment instruments.
  • Ecommerce market analysis.
  • Analysis of various market drivers and regulations governing the Indian cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.

Scope

  • To promote digital payments, the government abolished the merchant service fee on payment transactions made using RuPay cards and UPI from January 1, 2020. In addition, all businesses with annual turnover of more than INR500 million ($6.8 million) must provide their customers with the option to pay electronically via RuPay debit cards and UPI QR codes. And in December 2021, the government approved a INR13.0 billion ($178.1 million) incentive scheme to further promote the acceptance of RuPay debit cards and BHIM-UPI (a government-backed mobile payment app). As part of this scheme, the government will pay a percentage of the value of transactions conducted using RuPay debit cards and BHIM-UPI to acquiring banks to compensate losses due to the abolishment of merchant service fees. The scheme is applicable for transactions of up to INR2,000 ($27.39) effective from April 1, 2021. These moves will boost payments via UPI and RuPay debit cards.
  • Rising adoption of contactless cards is set to boost card payments in India. Although contactless cards are not especially popular in the country, they have gained traction during the pandemic due to rising demand for touch-free payments. To aid this trend, the country's contactless payment limit was increased from INR2,000 ($27.39) to INR5,000 ($68.48) in January 2021. The acceptance of contactless card payments among merchants is also on the rise, with over a quarter of POS terminals installed in the country supporting contactless payments as of January 2021. Meanwhile, in December 2020, National Payments Corporation of India (NPCI) - a division of RBI that operates RuPay - launched a new feature for RuPay cards. Card holders can now store funds (up to a maximum of INR2,000) on the card as a prepaid balance and use it to make contactless payments at POS terminals if there is any disruption to internet connectivity. If POS networks face such issues, the transaction amount is debited from the virtual prepaid balance stored on the card instead of the customer's bank account.
  • The RBI barred American Express and Discover (which owns Diners Club) from issuing new cards starting from May 1, 2021, due to failing to comply with data storage rules. This punishment was also imposed on Mastercard in July 2021. However, the restrictions were lifted for Diners Club in November 2021. Following the ban on Mastercard, issuers are gradually migrating their card portfolios to other payment networks. In July 2021, RBL Bank partnered with Visa to issue new credit cards. Similarly, in September 2021, YES BANK partnered with Visa to issue new credit cards. The bank also launched RuPay-branded credit cards in December 2021.

Reasons to Buy

  • Make strategic business decisions, using top-level historic and forecast market data, related to the Indian cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Indian cards and payments industry.
  • Assess the competitive dynamics in the Indian cards and payments industry.
  • Gain insights into marketing strategies used for various card types in India.
  • Gain insights into key regulations governing the Indian cards and payments industry.
Product Code: GDFS0564CI

Table of Contents

Table of Contents

  • Market Overview
  • Payment Instruments
  • Card-Based Payments
  • Merchant Acquiring
  • Ecommerce Payments
  • Buy Now Pay Later
  • Mobile Proximity Payments
  • P2P Payments
  • Bill Payments
  • Alternative Payments
  • Payment Innovations
  • Job Analysis
  • Payment Infrastructure and Regulation

Appendix