{"id":140,"date":"2025-07-08T11:47:30","date_gmt":"2025-07-08T11:47:30","guid":{"rendered":"https:\/\/gokiwi.in\/blog\/?p=140"},"modified":"2025-12-31T13:31:27","modified_gmt":"2025-12-31T13:31:27","slug":"credit-card-usage-in-india-2025-trends-and-consumer-behaviour","status":"publish","type":"post","link":"https:\/\/gokiwi.in\/blog\/credit-card-usage-in-india-2025-trends-and-consumer-behaviour\/","title":{"rendered":"Credit Card Usage in India: 2025 Trends and Consumer Behaviour"},"content":{"rendered":"\n

Credit Card Trends : Growth in Card Numbers and Spending<\/h3>\n\n\n\n

The credit card market in India reached about 108\u202fmillion active cards by December\u202f2024<\/strong>. That count doubled from roughly 54\u202fmillion in 2019.
The number of credit card transactions per month hit around 430 million in January\u202f2025<\/strong>, up ~31\u202f% year\u2011over\u2011year, but down 1\u202f% from December via seasonal dip as per (businesstoday.in<\/a>).
Total point\u2011of\u2011sale (POS) spending value on credit cards monthly peaked at about \u20b9714,730\u202fmillion in March\u202f2025<\/strong> (~\u20b97.15\u202flakh crore). It had reached as high as \u20b9792,928\u202fmillion in Oct\u202f2024.
<\/p>\n\n\n\n

Drivers of Growth<\/h3>\n\n\n\n

Growth stems from rising digital payments. The card payments market is set to cross INR\u202f30.1\u202ftrillion (~$360\u202fbillion) in 2025<\/strong> with 9.4\u202f% growth as per globaldata.com<\/a>.
Fintech firms and banks have introduced co\u2011branded cards and BNPL\u2011linked EMI options.
RBI allowed linking RuPay credit cards via UPI in mid\u20112022<\/strong>, and credit via RuPay doubled in first seven months of FY\u202f25 to \u20b963,826\u202fcrore from \u20b933,439 crore year ago. Tier\u2011II and Tier\u2011III cities see strong growth as well, with Tier\u2011I still accounting for ~65\u202f% of usage but new demand rising in cities like Surat, Nashik, Kanpur.
Young professionals, self\u2011employed and secured\u2011card users drive uptake. FD\u2011secured cards now help those with limited credit history build profiles.<\/p>\n\n\n\n

User Behaviour Patterns<\/h3>\n\n\n\n

Consumers now use credit cards not just for occasional purchases but to finance essentials. As per TransUnion CIBIL more consumers are using cards to meet consumption needs .
Average spend per card in January 2025 stood at \u20b916,911<\/strong>, down 1\u202f% from December but still slightly higher year\u2011on\u2011year.
Average transaction value fell to \u20b94,219 in February 2025 from \u20b94,282 in January as per ibsintelligence.com<\/a>. <\/p>\n\n\n\n

A behavioural study shows about 75\u202f% of users report increased spending<\/strong> due to UPI\u2019s ease and low \u2018guilt\u2019 feel in spending. That suggests behavioural spillover: digital ease makes users treat credit as disposable cash.<\/p>\n\n\n\n

Risks <\/h3>\n\n\n\n

Credit card debt rose sharply. Outstanding balances grew from \u20b987,686\u202fcrore in March\u202f2019<\/strong> to roughly \u20b92.70\u202flakh crore by June\u202f2024<\/strong> (\u20b92.29\u202flakh crore real growth net inflation). That equates to a household debt\u2011GDP ratio of ~43\u202f%, up from 38.5\u202f% in 2021. Defaults rose to 1.8\u202f% by June\u202f2024<\/strong>, from 1.6\u202f% in March\u202f2023,Delinquencies over 360 days climbed from 1.3\u202f% to 1.7\u202f% in that period as per –stanfordeconreview.com<\/a>
RBI\u2011mandated interest often runs at 45\u202f% APR<\/strong> (3.75\u202f% per month), plus late\u2011fees, increasing stress on
Household savings which fell to 18.1\u202f% of GDP in FY\u202f24<\/strong>, down for third year, indicating more reliance on credit cards and consumer debt as per timesofindia.indiatimes.com<\/a>.<\/p>\n\n\n\n

2025 Consumer Trends<\/h3>\n\n\n\n
    \n
  1. Card usage still centres in Tier\u2011I cities (65\u202f%), though Tier\u2011II\/III adoption grows fast.<\/li>\n\n\n\n
  2. Consumers like reward programs. Over 70\u202f% prefer cards with cashback or points (TransUnion data from 2024) gokiwi.in<\/a>.<\/li>\n\n\n\n
  3. Co\u2011branded cards tied to e\u2011commerce (Amazon Pay\u2011ICICI, Flipkart Axis) are gaining popularity.
    BNPL and EMI options linked to credit cards cross \u20b950,000\u202fcrore annually by 2024.<\/li>\n\n\n\n
  4. AI helps banks tailor offers. AI\u2011based scoring and personalisation tools gain in use. A Random Forest model hits ~89\u202f% accuracy in predicting customer credit risk arxiv.org<\/a>.<\/li>\n\n\n\n
  5. Companies are also launching virtual cards to cut plastic waste and enhance security gokiwi.in<\/a>.<\/li>\n<\/ol>\n\n\n\n

    Consumer Behavior Insights<\/h3>\n\n\n\n

    Many young Indians tap unsecured credit to fund aspirational spending. FT estimates one\u2011third of millennials and 40\u202f% of Gen\u202fZ are battling unsustainable debt across loans and cards ft.com<\/a>.
    That trend adds stress.
    As incomes stagnate and inflation rises, more households rely on cards to cover daily expenses as per     stanfordeconreview.com<\/a>.<\/p>\n\n\n\n

    Outlook: 2025 and Beyond<\/h3>\n\n\n\n

    Card issuance may slow. Data shows net number fell by 1.2\u202fmillion in January\u202f2025 to 109\u202fmillion total.
    Still, GlobalData projects card payments at INR\u202f30.1\u202ftrillion in 2025 (~$360\u202fbillion) with 9.4\u202f% growth     globaldata.com<\/a>.
    PwC expects card transaction volume to grow ~16\u202f% year\u2011on\u2011year over the next few years. RBI aims to expand card acceptance to 250\u202flakh touchpoints<\/strong> by Payments Vision\u202f2025     pwc.in<\/a>.<\/p>\n\n\n\n

    Consumers likely hold more cards per person. RBI projects average cards per user rising from 1.5 to 2.5 by 2026 as per gokiwi.in<\/a>.
    Digital adoption, small\u2011limit neo\u2011cards and co\u2011branded partnerships will drive Tier\u2011II\/III growth.
    AI\u2011tailored risk scoring and rewards will shape behavior.
    Still, rising delinquency and rising debt\u2011to\u2011income ratios will keep regulators and banks cautious.<\/p>\n\n\n\n

    Key Takeaways<\/h3>\n\n\n\n