Credit Card Surge: A New Era in Digital Payments

Credit card transactions in India surged over 2.6 times from 2021 to 2025, with private banks growing their market dominance, as per the RBI. The report noted a decline in debit card usage due to competition from UPI and digital wallets, highlighting a significant digital payment shift.

Credit card transactions in India have witnessed a remarkable growth, rising more than 2.6 times between 2021 and 2025, according to a report by the Reserve Bank of India. The report, released on Monday, highlights how private sector banks have increased their market share, further consolidating their dominance in this segment.

Transaction volumes escalated to 570 crore in 2025 from 216 crore in 2021, with the transaction value jumping from Rs 8.9 lakh crore to Rs 23.2 lakh crore, translating into an impressive annual growth rate of approximately 27%. Conversely, debit card transactions declined dramatically, influenced by the rising popularity of UPI and digital wallets.

The Payment System Report also sheds light on the rapid digitisation within India's payment ecosystem. Digital payment transaction volumes grew 33 times from 2016 to 2025, driven by sustained consumer adoption of electronic payment modes, with UPI QR codes seeing significant uptake among merchants.