Credit card usage in India is projected to surge due to factors such as increased consumer demand and enhanced systems from lenders. As of February 2024, the number of credit cards issued by banks exceeded 100 million, with a significant increase of 1.1 million cards compared to the previous month.
The total number of outstanding credit cards in the system reached 100.60 million, according to data from the Reserve Bank of India. This represents a notable growth from the 99.5 million cards in circulation in February 2023.
HDFC Bank leads the market in credit card issuances, with over 20 million cards in circulation. Other major players include SBI Card, ICICI Bank, and Axis Bank.
Despite a decline in point-of-sale (PoS) and e-commerce payments, overall credit card spending in India has remained robust, with a 26.27% year-on-year growth in February 2024 compared to the same period in 2023.
Analysts anticipate continued growth in credit card usage, driven by factors such as increased digitalization of financial transactions, ease of use, and consumer comfort with using credit for consumption. Lenders are also investing in strengthening their systems and processes to support this growth.