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India card payments market to surpass $728bn in 2027
August 03, 2023
India’s card payments market is expected to almost triple from $262.1 billion in 2022 to $728.2 billion in 2027, driven by rising consumer spending, says GlobalD, a data and analytics company.
GlobalData’s Payment Cards Analytics reveals that card payments value in India registered a strong growth of 26.2% in 2022, supported by the improving economic conditions. This trend is expected to continue in 2023 and set to grow by 28.6% to reach $337.2 billion in 2023.
“India, which is primarily a cash-driven economy, made robust progress in the adoption and usage of card payments supported by improvement in payment infrastructure, and constant efforts by financial authorities to increase financial inclusion and boost cashless payments,” said Ravi Sharma, Lead Banking and Payments Analyst at GlobalData.
The post-COVID-19 pandemic recovery in card payments was mainly driven by credit and charge cards, with this card category growing by 53.0% in 2021 and 46.7% in 2022, as consumer spending increased on travel, accommodation, restaurants, and transportation. Loyalty programs and reward benefits such as discounts, and instalment facilities are also aiding credit and charge card growth. This trend is expected to continue in 2023, as credit and charge card payments are expected to grow by 38.1%.
Debit card payments, on the other hand, are expected to grow at a slower pace of 9.5% during the same period. Experts said as eCommerce brands continue to penetrate deeper into the remote roots of the country, cash on delivery will continue to be prominent – despite growth of digital payments.
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