India's Card Payments Market Set to Surge by 11.3% in 2024, Reports GlobalData

India's card payments market is expected to grow by 11.3% in 2024, reaching Rs 28.4 trillion (USD 344 billion). This growth is driven by rising consumer preference for non-cash payments and government initiatives promoting financial inclusion and electronic payments. The trend is likely to continue with an 11.1% CAGR from 2024 to 2028.

India's card payments market is set for substantial growth in 2024, with an anticipated rise of 11.3% to Rs 28.4 trillion (USD 344 billion), according to GlobalData. The boost is attributed to a growing consumer preference for non-cash payments and favorable government policies aimed at enhancing financial inclusion and electronic payment adoption.

GlobalData's Payment Cards Analytics show a significant upward trend in card payments. In 2022, the market saw a 27.1% surge in card payment value, driven by increased consumer spending. This positive trend continued into 2023, with a 13.1% growth, bringing the total card payment value to Rs 25.5 trillion (USD 309.2 billion).

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, highlighted the decline in cash usage and rising confidence in electronic payments as key factors. "India's card payments market continues to expand as cash usage declines," Sharma said. Government initiatives and growing consumer confidence have paved the way for the growth of card payments in the country.

Sharma noted that government programs like the Pradhan Mantri Jan-Dhan Yojana (PMJDY), which provides low-cost bank accounts and debit cards, and reductions in merchant service fees have facilitated this shift. These efforts aim to promote financial inclusion, particularly for the rural population.

Debut cards remain the most common type of card, driven by the increasing banked population, while credit and charge cards accounted for 75.7% of the total card payment value in 2023. Benefits such as reward points, discounts, and installment payment options contribute to the popularity of these cards.

The rise in e-commerce has further fueled the growth of card payments. In 2023, cards accounted for 24.6% of the total e-commerce transaction value, according to GlobalData's 2023 Financial Services Consumer Survey. The Reserve Bank of India (RBI) has supported electronic payment expansion through its Payments Infrastructure Development Fund (PIDF), deployed 827,901 POS terminals and 27.2 million QR code points by November 2023.

Looking ahead, India's card payments market is slated for a robust compound annual growth rate (CAGR) of 11.1% from 2024 to 2028. Key growth drivers include ongoing government efforts, improved payment infrastructure, and the boom in e-commerce.

"The market is expected to experience significant growth over the forecast period," Sharma concluded, emphasizing the strong growth outlook for the industry's future.