Indin card sale
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Executive summary
India’s card market is in the middle of a structural expansion: credit‑card issuance and monthly transaction volumes have surged into the hundreds of millions of transactions, supported by rising digital adoption and regulatory nudges, but data sources disagree on exact card counts and there are clear signs of household stress from rising defaults and high interest costs [1] [2] [3]. Forecasts and market research predict continued growth in transaction value through 2025–29 even as mobile wallets and competition shape margins and product strategy for issuers [4] [5].
1. The scale and the numbers — rapid growth, uneven metrics
Monthly credit‑card transaction volumes hit record highs in early 2025, with CEIC reporting an all‑time high of 458.65 million units in March 2025 and other RBI‑based series showing similarly sharp month‑on‑month gains [3]. Publicly available summaries put active credit cards at “over 100 million” by 2024 or around 108–109 million by late 2024/January 2025 in some compilations, while other forecasts and datasets (Statista, ReportLinker) give lower historical or projected counts—illustrating disagreement in what exactly “cards in circulation” means across sources [2] [1] [6] [7].
2. What’s driving the sale and use of cards
Broad drivers are digital payments adoption, e‑commerce growth and rewards programs that make credit attractive to consumers; NPCI and domestic product innovations such as RuPay contactless integrations for transit also expand use cases for card products [5] [4] [8]. Analysts point to increasing bank outreach, financial inclusion and improving merchant acceptance as the backbone of transaction‑value expansion projected to reach roughly INR30.1 trillion in 2025 per GlobalData [4].
3. Where the gains concentrate — urban, young and online
Card usage still skews to Tier‑I cities and online commerce, with about 60–65% of spending concentrated in metros while Tier‑II/III adoption climbs, and roughly half of card transactions occurring online according to reporting trends [1] [2] [9]. Younger cohorts are notable users: reporting from FT and consumer surveys cited by market writeups finds many millennials and Gen‑Z using unsecured credit to finance aspirational spending, raising questions about sustainability [1].
4. Risks: debt, defaults and high rates
Rising usage has been accompanied by asset‑quality pressure: defaults and long‑dated delinquencies rose in 2023–24 in cited summaries, with defaults noted around 1.8% by June 2024 and delinquency over 360 days ticking higher, while card APRs in some sources are framed as among the world’s highest (reported ranges and late‑fee structures vary by source) — factors that magnify household stress as savings rates have slipped [1]. These data point to downside risk to future issuance if macro stress increases.
5. Competitive and regulatory context shaping “card sale” economics
The Reserve Bank’s moves on card portability and other draft guidelines are reshaping competitive dynamics among issuers and schemes, and domestic schemes like RuPay are increasing product reach; at the same time, mobile wallets (UPI) remain a major competitive threat for everyday transactions, which in turn forces issuers to sharpen rewards and acceptance strategies [10] [4] [9]. Market reports emphasize that supportive regulation and infrastructure will underpin transaction‑value growth despite this intense competition [4].
6. Outlook and what “sale” means for stakeholders
Market research houses forecast continued transaction‑value expansion and double‑digit growth in certain measures through 2025–29 even while credit‑card penetration (cards per capita) remains low versus developed markets, leaving a runway for issuer growth if credit quality is managed; specific numeric forecasts vary widely across providers and methodological choices, so “sales” or issuance figures should be read in context of each source’s definitions [4] [2] [7]. Independent observers and investors should weigh rising volumes and new use cases against elevated APRs, growing delinquencies, and the persistent competitive pull of UPI and wallets [1] [9].