India’s credit, charge card payments market to surpass $300 billion in 2025: GlobalData

The credit and fees payment market in India is expected to suffer from significant growth in 2025, with an expected increase of 14 percent to 25.4 rupees (303.9 billion dollars). This expansion is driven by increasing consumers’ preference for non -monetary transactions and favorable economic conditions.

According to Globaldata, India has seen 27.9 percent growth in the value of credit card and fees payment in 2023, followed by an increase of 15.3 percent to 22.3 rupees ($ 266.5 billion) in 2024. This upward path is expected to continue, despite global uncertainty.

Ravi Sharma, a banking and leading bank analyst in Globalta, pointed out the popularity of credit cards and increasing fees on debit cards, saying: “Although the penetration of the discount cards is low, credit cards and fees are very preferred for payments. The advantages of cards – which are known to the promotional campaigns of banks – adopt and use credit cards in a rise.”

Credit cards and fees dominating the value of transactions, which represent 81 percent of the total payment value of the payment card in 2024, is attributed to added value features such as discounts and money. These incentives encouraged the use of these cards for higher value transactions throughout the country.

Facilitating this growth is to provide installment options by major banks in India. For example, Axis Bank and HDFC Bank offers flexible credit card holders to transfer purchases into monthly installments, facilitating consumers to manage large ticket expenses.

E -commerce payments also contributed significantly in this direction, which represents 11.2 percent of the total value of e -commerce transactions in 2024. The benefits of using credit cards and fees for online transactions, such as safety and ease of use, continue to attract consumers.

In a move expected to stimulate more growth, the Indian Reserve Bank reduced the main policy rate by 50 basis points to 5.50 percent in June 2025. This reduction will reduce interest rates on loans, including credit cards, making credit more able to consumers.

We look forward, Sharma commented on the potential of the market: “The credit and fees payment market market in India is ready for continued expansion. It is expected that the continuous shift from cash to electronic payments will increase, the availability of pricing benefits on credit and fees, and increase the trader’s acceptance between 2025 and 2029 (470.1 billion dollars) in 2029.