PUBLISHER: TechSci Research | PRODUCT CODE: 1348718
PUBLISHER: TechSci Research | PRODUCT CODE: 1348718
India Credit Card Market, By Type Market Share Analysis, Service Providing Company, Credit Limit Market Share Analysis, Card Type Market Share Analysis, Benefits Market Share Analysis, Region, Competition, Forecast & Opportunities, 2018-2028F
We offer 8 hour analyst time for an additional research. Please contact us for the details.
The Indian credit card market is poised to exhibit robust growth in the forecast period due to several key factors. The increasing adoption of cashless transactions, coupled with enticing credit card offers, rising acceptance of credit cards, a shift from debit-based to credit-based economy, and the emergence of co-branded card offerings are driving this growth.
India's credit card market has undergone significant expansion, characterized by rapid technological advancements. Noteworthy developments, including streamlined onboarding processes, unique card products, personalized offers and rewards, and enhanced mobile apps, have proven advantageous to existing customers while attracting new ones. Credit card issuers are diligently working to raise awareness and foster innovation in this market, and the notable growth of the credit card market in India attests to these efforts.
As of July 2022, there were 78 million active credit cards in circulation. Moreover, credit card spending reached a record high of USD 15.16 billion (INR 1.13 lakh crore) in May 2022. The growth trajectory, however, experienced a minor dip during FY 2020-21 due to the COVID-19 pandemic, resulting in a modest 9% increase in credit card spending. This occurred despite the overall uptick in credit card usage. Notably, the Reserve Bank of India (RBI) intervened to curb some of the major credit card issuers from issuing new cards in India during this period.
| Market Overview | |
|---|---|
| Forecast Period | 2024-2028 |
| Market Size 2022 | USD 150 Billion |
| Market Size 2028 | USD 350 Billion |
| CAGR | 15% |
| Fastest Growing Segment | Rupay |
| Largest Market | South Region |
Following the wave of demonetization and government initiatives to promote a cashless economy, credit card acceptance has witnessed a surge in India. Point-of-sale (POS) terminals across the country have adapted to accepting credit cards for a diverse range of goods and services. For instance, as of November 2022, India boasts 131,998,684 POS terminals, affirming the widespread adoption of credit cards.
The rise of digital payments, particularly Unified Payments Interface (UPI) transactions, has significantly impacted the credit card industry. Factors such as smartphone proliferation, affordable internet access, and widespread merchant acceptance have propelled UPI transactions. Fintech companies are collaborating with traditional banks to offer credit cards and various digital lending services, including buy now, pay later (BNPL) and equated monthly installment (EMI) options. For example, RuPay credit cards, primarily issued by public sector banks, can now be linked to UPI apps, enabling QR-based credit payments at physical stores and streamlining payment processes for consumers.
Market Growth Hindered by Limited Credit Card Penetration
Comparatively, the United States boasts 1.5 billion active credit cards, constituting 67% of all active cards in the country. The widespread use of credit cards for purchases is prominent in the US due to convenience and straightforward usage, minimizing concerns about account-related fraud.
In India, psychological factors continue to impact penetration. The conservative middle class exhibits reservations about using credit cards and credit in general. Perceived high interest rates and uncertainty about credit card benefits are obstacles to credit card market expansion. Nonetheless, credit card companies have countered these challenges by offering extra perks such as discounts, travel points, and other incentives to attract customers.
Diverse Offers with Credit Cards
Credit card usage offers users a myriad of advantages when making online payments for various services. These benefits include rewards, vouchers, cashback offers, and more, enhancing the value proposition of credit card payments for activities such as hotel bookings, mobile recharges, movie tickets, and shopping. Notable credit cards like HDFC Bank Regalia Credit Card and SBI Card Elite offer cardholders lounge access, golf privileges, dining and retail discounts, reward points, and travel insurance, amplifying the attractiveness of credit card usage.
Entry of NBFCs Fueling Market Competition
The credit card market is highly concentrated, with the top six issuers accounting for 81% of the market. However, with an estimated 350 million people anticipated to access online shopping in the next five years, more players are needed. The RBI's more permissive approach toward allowing Non-Banking Financial Companies (NBFCs) to launch credit businesses, provided they meet specific net worth criteria, will foster competition and encourage new entrants into the credit card market.
Market Segmentation
The India Credit Card market is segmented based on Type, Service Providing Company, Credit Limit, Card Type, Benefits, Region, and by Competitional Landscape. Based on type, the market is further fragmented into General Purpose & Private Label. Based on Service Providing Company, the market is segmented into Visa, Mastercard, RuPay & Others. Based on Credit Limit, the market is subjected into parts such as upto 25 K, 25-50K, 51k-2L & 2-5L. Based on Card Type, the market is fragmented into Base, Signature and Platinum. Based on the Benefits, the market is segmented into Cashback & Voucher. The market analysis also studies the regional segmentation to be divided among north, west, south, & east.
Company Profiles
HDFC Bank Ltd., SBI Cards and Payment Services Limited, ICICI Bank Limited, Axis Bank Limited, Citibank India, Bank of Baroda, RBL Bank Ltd., Kotak Mahindra Bank Limited, Punjab National Bank, IndusInd Bank, are among the major market players in India that lead the market growth of the India Credit Card Market.
Report Scope:
In this report, India Credit Card market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
India Credit Card Market, By Type:
- General Purpose
- Private Label
India Credit Card Market, Service Providing Company:
- Visa
- Mastercard
- RuPay
- Others
India Credit Card Market, Credit Limit:
- Upto 25 K
- 25-50K
- 51k-2L
- 2-5L
India Credit Card Market, Card Type:
- Base
- Signature
- Platinum
India Credit Card Market, Benefits:
- Cashback
- Voucher
India Credit Card Market, By Region:
- North
- West
- South
- East
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in India Credit Card market.
Available Customizations
With the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to five).
Table of Contents
1. Introduction
- 1.1. Product Overview
- 1.2. Key Highlights of the Report
- 1.3. Market Coverage
- 1.4. Market Segments Covered
- 1.5. Research Tenure Considered
2. Research Methodology
- 2.1. Objective of the Study
- 2.2. Baseline Methodology
- 2.3. Key Industry Partners
- 2.4. Major Association and Secondary Sources
- 2.5. Forecasting Methodology
- 2.6. Data Triangulation & Validation
- 2.7. Assumptions and Limitations
3. Executive Summary
- 3.1. Market Overview
- 3.2. Market Forecast
- 3.3. Key Regions
- 3.4. Key Segments
4. Voice of Customer Analysis (B2C Model Analysis)
- 4.1. Sample Size Determination
- 4.2. Respondent Demographics
- 4.2.1. By Gender
- 4.2.2. By Age
- 4.2.3. By Occupation
- 4.3. Most Important Factors Determining Usage for Credit Card Users
- 4.4. Factors Influencing Credit Card Adoption in India
- 4.5. Leading Credit Card Companies in Terms of Customer Service
- 4.6. Frequency of Review of Credit Score by Credit Card Users
- 4.7. Purpose of Using Credit Card
- 4.8. Readiness to Increase Credit Limit
5. India Credit Card Market Outlook
- 5.1. Market Size & Forecast
- 5.1.1. By Volume
- 5.2. Market Share & Forecast
- 5.2.1. By Type Market Share Analysis (General Purpose & Private Label)
- 5.2.2. By Service Providing Company Market Share Analysis (Visa, Mastercard, RuPay & Others)
- 5.2.3. By Credit Limit Market Share Analysis (Upto 25 K, 25-50K, 51k-2L & 2-5L)
- 5.2.4. By Card Type Market Share Analysis (Base, Signature and Platinum)
- 5.2.5. By Benefits Market Share Analysis (Cashback & Voucher)
- 5.2.6. By Regional Market Share Analysis
- 5.2.6.1. North Market Share Analysis
- 5.2.6.2. West Market Share Analysis
- 5.2.6.3. South Market Share Analysis
- 5.2.6.4. East Market Share Analysis
- 5.2.7. By Top 5 Companies Market Share Analysis, Others (2022)
- 5.3. India Credit Card Market Mapping & Opportunity Assessment
- 5.3.1. By Type Market Mapping & Opportunity Assessment
- 5.3.2. By Service Providing Company Market Mapping & Opportunity Assessment
- 5.3.3. By Card Type Market Mapping & Opportunity Assessment
- 5.3.4. By Benefits Market Mapping & Opportunity Assessment
- 5.3.5. By Regional Market Mapping & Opportunity Assessment
6. West India Credit Card Market Outlook
- 6.1. Market Size & Forecast
- 6.1.1. By Volume
- 6.2. Market Share & Forecast
- 6.2.1. By Service Providing Company Market Share Analysis
- 6.2.2. By Credit Limit Market Share Analysis
- 6.2.3. By Card Type Distribution Channel Market Share Analysis
7. South India Credit Card Market Outlook
- 7.1. Market Size & Forecast
- 7.1.1. By Volume
- 7.2. Market Share & Forecast
- 7.2.1. By Service Providing Company Market Share Analysis
- 7.2.2. By Credit Limit Market Share Analysis
- 7.2.3. By Card Type Distribution Channel Market Share Analysis
8. North India Credit Card Market Outlook
- 8.1. Market Size & Forecast
- 8.1.1. By Volume
- 8.2. Market Share & Forecast
- 8.2.1. By Service Providing Company Market Share Analysis
- 8.2.2. By Credit Limit Market Share Analysis
- 8.2.3. By Card Type Distribution Channel Market Share Analysis
9. East India Credit Card Market Outlook
- 9.1. Market Size & Forecast
- 9.1.1. By Volume
- 9.2. Market Share & Forecast
- 9.2.1. By Service Providing Company Market Share Analysis
- 9.2.2. By Credit Limit Market Share Analysis
- 9.2.3. By Card Type Distribution Channel Market Share Analysis
10. Market Dynamics
- 10.1. Drivers
- 10.1.1. Increasing Adoption of Cashless Transactions
- 10.1.2. Attractive Offers on Usage of Credit Cards
- 10.1.3. Rising Acceptance of Credit Cards
- 10.2. Challenges
- 10.2.1. Credit Card Payment Defaults
- 10.2.2. High Interest and Charges
11. Impact of COVID-19 on India Credit Card Market
- 11.1. Impact Assessment Model
- 11.1.1. Key Segments Impacted
- 11.1.2. Key Regions Impacted
12. Market Trends & Developments
- 12.1. Increasing Penetration of Co-Branded Cards
- 12.2. Increasing Security
- 12.3. Adoption of 5G
- 12.4. Digital India Initiative
- 12.5. Rising Contactless Payments
13. Porter's Five Forces Model
- 13.1. Competition Rivalry
- 13.2. Bargaining Power of Buyers
- 13.3. Bargaining Power of Suppliers
- 13.4. Threat of New Entrants
- 13.5. Threat of Substitutes
14. SWOT Analysis
- 14.1. Strengths
- 14.2. Weaknesses
- 14.3. Opportunities
- 14.4. Threats
15. Policy & Regulatory Landscape
16. India Economic Profile
17. Competitive Landscape
- 17.1. Company Profiles
- 17.1.1. HDFC Bank Limited
- 17.1.1.1. Company Details
- 17.1.1.2. Product & Services
- 17.1.1.3. Financials (As Reported)
- 17.1.1.4. Digital Banking Services
- 17.1.1.5. Key market Focus & Geographical Presence
- 17.1.1.6. Recent Developments
- 17.1.1.7. Key Management Personnel
- 17.1.2. SBI Cards and Payment Services Limited
- 17.1.2.1. Company Details
- 17.1.2.2. Product & Services
- 17.1.2.3. Financials (As Reported)
- 17.1.2.4. Digital Banking Services
- 17.1.2.5. Key market Focus & Geographical Presence
- 17.1.2.6. Recent Developments
- 17.1.2.7. Key Management Personnel
- 17.1.3. ICICI Bank Limited
- 17.1.3.1. Company Details
- 17.1.3.2. Product & Services
- 17.1.3.3. Financials (As Reported)
- 17.1.3.4. Digital Banking Services
- 17.1.3.5. Key market Focus & Geographical Presence
- 17.1.3.6. Recent Developments
- 17.1.3.7. Key Management Personnel
- 17.1.4. Axis Bank Limited
- 17.1.4.1. Company Details
- 17.1.4.2. Product & Services
- 17.1.4.3. Financials (As Reported)
- 17.1.4.4. Digital Banking Services
- 17.1.4.5. Key market Focus & Geographical Presence
- 17.1.4.6. Recent Developments
- 17.1.4.7. Key Management Personnel
- 17.1.5. Citibank India
- 17.1.5.1. Company Details
- 17.1.5.2. Product & Services
- 17.1.5.3. Financials (As Reported)
- 17.1.5.4. Digital Banking Services
- 17.1.5.5. Key market Focus & Geographical Presence
- 17.1.5.6. Recent Developments
- 17.1.5.7. Key Management Personnel
- 17.1.6. Bank of Baroda
- 17.1.6.1. Company Details
- 17.1.6.2. Product & Services
- 17.1.6.3. Financials (As Reported)
- 17.1.6.4. Digital Banking Services
- 17.1.6.5. Key market Focus & Geographical Presence
- 17.1.6.6. Recent Developments
- 17.1.6.7. Key Management Personnel
- 17.1.7. RBL Bank Ltd.
- 17.1.7.1. Company Details
- 17.1.7.2. Product & Services
- 17.1.7.3. Financials (As Reported)
- 17.1.7.4. Digital Banking Services
- 17.1.7.5. Key market Focus & Geographical Presence
- 17.1.7.6. Recent Developments
- 17.1.7.7. Key Management Personnel
- 17.1.8. Kotak Mahindra Bank Limited
- 17.1.8.1. Company Details
- 17.1.8.2. Product & Services
- 17.1.8.3. Financials (As Reported)
- 17.1.8.4. Digital Banking Services
- 17.1.8.5. Key market Focus & Geographical Presence
- 17.1.8.6. Recent Developments
- 17.1.8.7. Key Management Personnel
- 17.1.9. Punjab National Bank
- 17.1.9.1. Company Details
- 17.1.9.2. Product & Services
- 17.1.9.3. Financials (As Reported)
- 17.1.9.4. Digital Banking Services
- 17.1.9.5. Key market Focus & Geographical Presence
- 17.1.9.6. Recent Developments
- 17.1.9.7. Key Management Personnel
- 17.1.10. IndusInd Bank
- 17.1.10.1. Company Details
- 17.1.10.2. Product & Services
- 17.1.10.3. Financials (As Reported)
- 17.1.10.4. Digital Banking Services
- 17.1.10.5. Key market Focus & Geographical Presence
- 17.1.10.6. Recent Developments
- 17.1.10.7. Key Management Personnel
- 17.1.1. HDFC Bank Limited
18. Strategic Recommendations/Action Plan
- 18.1. Key Focus Areas
- 18.1.1. Target Region
- 18.1.2. Target Type
- 18.1.3. Target Credit Limit
19. About Us & Disclaimer
(Note: The companies list can be customized based on the client requirements.)
