India’s Credit Card Market to Reach 200 Million by 2028, Says PwC Report
A recent report by PwC highlights significant growth in India’s credit card market. The number of credit cards is expected to reach 200 million by FY28-29, doubling its current size. Over the past five years, the industry has seen a 100% increase in issued cards.
Transaction volumes have grown by 22%, and transaction values have surged by 28%. This growth is attributed to new products, innovative offerings, and the expansion of customer segments.
However, debit card usage has declined. In FY23-24, debit card transaction volumes dropped by 33%, and spending decreased by 18% year-on-year. This decline is due to the growing popularity of the Unified Payments Interface (UPI), which offers ease of use and zero Merchant Discount Rate (MDR).
Digital payments in India are thriving, with a 42% increase in transactional volume in FY23-24. This trend is expected to triple by FY28-29, driven by innovations, new business models, technological advancements, and increasing customer awareness.
Doubts Revealed
PwC -: PwC stands for PricewaterhouseCoopers. It is a big company that helps other businesses with things like accounting, taxes, and consulting.
Credit Card -: A credit card is a small plastic card that lets people borrow money to buy things. They have to pay back the money later, usually with some extra fees.
FY28-29 -: FY28-29 means the financial year 2028-2029. A financial year is a 12-month period that companies and governments use for accounting and budgeting.
UPI -: UPI stands for Unified Payments Interface. It is a system in India that allows people to transfer money between bank accounts instantly using their mobile phones.
Digital Payments -: Digital payments are ways to pay for things using electronic methods, like using a phone app or a computer, instead of cash or checks.
Transactional Volume -: Transactional volume means the total number of transactions or payments made. If more people are buying things, the transactional volume goes up.
