Credit Cards in India are in vogue with the #creditcard spend in India having hit an all-time high level & is now above Rs One Lakh Crore; while bounce rates have fallen to a three-year low. These data points are clear indicative of the fact that the India Credit Card industry is on a steady growth path.
Rather, over the last 5 years, the credit card issuance has been growing significantly at a 20% CAGR, while the credit card holders has also been witnessing an increase year-on-year & reached 7.3 Crores in 2022.
Further, there are several underlying #trends that are providing and will keep the growth buoyant which includes of #cashlesspayment & adoption of usage of credit cards at transit systems, changing consumer preference during #covid times, increased disposable income coupled with improved (financial) infrastructure.
Besides, the proposed 2% Merchant Discount Rate (MDR) on credit card transactions on the RuPay-Unified Payments Interface (UPI), if implemented, may boost credit card spends and the average customer balance.
With these trends, coupled with many more evolving models and structural changes in pipeline, an interesting & lucrative time lies ahead for the credit industry of India.
What is your take? Do you feel that the Indian credit card industry will be on the upward trajectory in the coming months too? Share your opinion by commenting below.
Interested in knowing all about the Indian Credit Card Market of India, then read Ken Research’s latest report on “Indian Credit Card Industry Outlook to 2027.”
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