India’s Card Payments to Grow by 11.3% in 2024, Says GlobalData
India’s card payments market is expected to grow by 11.3% in 2024, reaching Rs 28.4 trillion (USD 344 billion), according to GlobalData, a data and analytics company. This growth is driven by a rising consumer preference for non-cash payments and supportive government initiatives aimed at boosting financial inclusion and electronic payment adoption.
Significant Growth in Recent Years
GlobalData’s Payment Cards Analytics reveals that the market saw a 27.1% increase in card payment value in 2022, fueled by a surge in consumer spending. This trend continued into 2023, with a 13.1% growth, bringing the total card payment value to Rs 25.5 trillion (USD 309.2 billion).
Expert Insights
Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, emphasized the role of declining cash usage and rising consumer confidence in electronic payments. He said, “India’s card payments market continues to grow as cash usage declines. The government’s initiatives, along with the increasing consumer confidence in electronic payments, have paved the way for the growth of card payments in the country.”
Government Initiatives
The Indian government’s push for financial inclusion, notably through the Pradhan Mantri Jan-Dhan Yojana (PMJDY) program, has significantly contributed to this growth. The program aims to provide low-cost bank accounts and debit cards, particularly targeting the rural population. Reductions in merchant service fees have further encouraged the shift from cash to card-based transactions.
Types of Cards and E-commerce
Debit cards remain the most prevalent type of card in India, driven by the expanding banked population. However, credit and charge cards accounted for a substantial 75.7% of the total card payment value in 2023. The rise in e-commerce has also played a crucial role in the growth of card payments, with payment cards representing 24.6% of the total e-commerce transaction value in 2023.
Infrastructure Development
To support the expansion of electronic payments, the Reserve Bank of India (RBI) established the Payments Infrastructure Development Fund (PIDF) in January 2021. By November 2023, the initiative had successfully deployed 827,901 POS terminals and 27.2 million QR code acceptance points. The program has been extended to December 2025.
Future Outlook
Looking ahead, the outlook for India’s card payments market remains highly optimistic. The market is projected to register a strong compound annual growth rate (CAGR) of 11.1% from 2024 to 2028. Key drivers of this growth include ongoing government efforts to promote financial inclusion and electronic payments, improvements in payment infrastructure, and the expanding e-commerce sector.
Sharma concluded, “Overall, the card payments value is expected to register a strong compound annual growth rate (CAGR) of 11.1% between 2024 and 2028.”
Doubts Revealed
GlobalData -: GlobalData is a company that provides data and analysis on various industries, including finance. They help businesses understand market trends.
Rs 28.4 trillion -: Rs 28.4 trillion means 28.4 lakh crore rupees. It’s a very large amount of money, showing how much people will spend using cards in India.
USD 344 billion -: USD 344 billion is the amount in US dollars, which is another way to show how big the card payments market in India will be.
Consumer preference for non-cash payments -: This means that people in India are choosing to use cards or digital methods instead of cash to buy things.
Government initiatives -: These are programs started by the Indian government to encourage people to use cards and digital payments instead of cash.
Pradhan Mantri Jan-Dhan Yojana -: This is a government program in India that helps people open bank accounts, making it easier for them to use cards and digital payments.
Debit cards -: Debit cards are cards linked to your bank account. When you use them, money is taken directly from your account.
Credit cards -: Credit cards let you borrow money from the bank to make purchases, which you pay back later.
E-commerce -: E-commerce means buying and selling things online, like shopping on websites such as Amazon or Flipkart.
RBI’s Payments Infrastructure Development Fund -: This is a fund created by the Reserve Bank of India (RBI) to improve the systems and technology for making digital payments in India.
