Recent data indicates a potential decline in the adoption of credit cards in India by 2027, despite a significant surge in circulation over the past few years.
Credit Card Circulation Trends: Credit card circulation in India has surged by 62% in the last three years. However, projections suggest a decline in credit card transaction values, both online and in-store, in favor of UPI payments.
Key Players in the Credit Card Market: Monthly data from the Reserve Bank of India (RBI) highlights that India’s top four banks dominate the credit card market, with HDFC Bank leading with a 20.28% market share and 20.4 million cards in circulation. Other major players include the State Bank of India, ICICI Bank, and Axis Bank.
Collaboration with UPI: The question arises: Will UPI replace credit cards, or will collaboration between credit card companies and UPI be vital for future adoption?
Insightful Data:
Less than 4% of Indians own credit cards, far below the World Bank’s benchmark of 30%.
The total number of unique credit cardholders in the country is less than 40 million.
Per capita card spends are estimated at just $23, a significant difference compared to the USA’s $3,200.
Do you use credit cards? If yes, how many credit cards do you have.
Been there, done that. Had dozens of active cards at the peak. Most LTF and 1-2 paid cards. Always made 100% full payment close to payment dates. Maximized rewards points and merchant offers by choosing the right card.
But now with lots of people in the game, and people exploiting with business expenses on personal cards, the credit card has lost its charm. So many categories like utility, fuel, and even education do not earn reward points, in fact, the latest trend is to charge the customer for making utility payments!
So, for a person like me, who uses the credit card to really earn from interest-free delayed payments and earning cashbacks, I see lesser usage of credit card in the near future due to these changes in the ecosystem.
Credit is a western idea and leads to debt. Incentive is for companies to ensure people go into debt and pay humongous interests. Smart people like @R.E.M exploit these
The future of credit cards in India by 2027 is a topic with mixed views, and while there may be some decline in adoption, I don’t think credit cards will be disappearing anytime soon.
The rise of digital payments, UPI, and mobile wallets has certainly made things more convenient, but credit cards are evolving to keep up with these changes. For instance, now we have Rupay credit cards that allow payments directly via UPI, which makes using a credit card as easy as any other mobile wallet. This integration of UPI with credit cards gives users the best of both worlds—rewards and credit building—while also tapping into the convenience of UPI’s fast payments.
Credit cards still offer exclusive perks, like cashback, rewards, and credit score building, which other payment methods don’t match yet. Also, with digital-only cards becoming more popular, there’s a shift toward making credit cards more tech-friendly and accessible, a trend that platforms like Easemoney have been following to help users navigate the changing financial landscape.
So, will credit cards decline? Possibly, but they’ll adapt to the changing needs of users. I believe that by 2027, we’ll likely see a more integrated, digital-first experience, but credit cards will still hold their ground in India’s financial ecosystem.
