Rapid Urbanization, Adoption of Cashless Society, and Emergence of Fintech will drive the growth of India Credit Card Industry at a CAGR of 8.6% during 2022-27: Ken Research

Due to increasing digital penetration and urbanization, cash transactions will move to cards and other digital payment modes in the next five years.
Going forward, in 2022 we will see a growth in transaction values for both UPI and credit cards as people will shift away from cash.
FinTechs have opened up new avenues for the credit industry to tap into the large customer base without credit history. Partnership between FinTechs and traditional channel will bring in innovative changes that can support the growth of the credit industry.
BNPL can be a threat to the credit card industry in the future. Keeping in mind the low penetration of credit cards in India, and with FinTechs entering into this space, there is a long way to go for credit cards as well.

Rapid Urbanization: Increased income of people along with growing standards of living in urban areas are propelling usage of new  consumer products and services, leading to increased demand for modern products specially by the youth of the country. Such demand has led to increased average spend per card and number of transactions.

Adoption of Cashless Society: The coronavirus pandemic has led to an increase in cashless transactions, thereby promoting the use of cards (both credit and debit).  Due to lower monthly incomes for a large strata of the population during the early days of the pandemic, demand for credit cards increased. The demand for online payments is ever growing and service providers are constantly innovating themselves to offer rewarding services to their users. Consumers are heavily relying on cards for making payments for their day-to-day requirements because of speed and convenience.

Co-branding with FinTechs for credit cards: Banks should focus on bringing these FinTechs on board with co-branded partnerships in the credit card space. The focus should be on introducing more propositions in the high-spend categories. This will help banks to not only provide better offerings to their existing customer base and acquire new customers but also earn higher interchange.

Traditional banks are already offering BNPL. Given the growth of BNPL in India, especially among the millennial population, other banks will also venture into this space. A lot of banks are already working in this space, and they can partner with FinTechs in order to leverage their experience and brand value along with the technology, product offerings and merchant reach of FinTechs.

Omnichannel ecosystem for credit EMIs: The credit EMI market has traditionally been dominated by offline retail. However, due to the current situation, online buying is seeing greater traction among customers. Players in this sector need to focus more on building the Omnichannel ecosystem to cater to both the offline and online market.

The publication titled "Indian Credit Card Industry Outlook to 2027: Driven by adoption of contactless payments, shifting consumer preferences towards cashless mode of payments, rising disposable income and digitalization" provides a comprehensive analysis of the credit card industry in India. The report covers various aspects including credit card industry market size on the basis of revenue, market overview, genesis of the market, India credit card industry Cycle, overview of credit card services/ Products, ecosystem of entities in the Indian credit card industry, consumption expenditure and borrowing trends, emerging business models- Loan against Credit Cards, value chain analysis of credit cards, growth drivers, restraints and challenges, major trends and developments, alternative assessment for NIP (no-income-proof) customers for credit card offerings, collection risks associated with credit card, key metrics of credit card issuers in India, government initiatives in the Indian credit card industry, Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jan Dhan Awas Yojana (PMAY), collection risks associated with credit card, initiatives to promote access to data & innovation, regulatory sandbox, launch of India stack, recognising P2P lenders, increase in number of fintech start-ups, growth of digital lending, and evaluation of KYC norms. Insights on competitive landscape of credit card industry, company profile of major FinTechs players operating in the ecosystem on the basis of Company Overview, About the Company, Revenue Model, Funding and Investors, Key Features, Fee Structure, Product Offered, Strengths, Recent Developments, Key Takeaways and Financials- 2018,2019,2020 & 2021 and company profile of major Bank players operating in the ecosystem on the basis of Bank Overview, About the Company, Business Model, Product Offered, Key Features, Strengths, Recent Developments and Key Takeaways is also covered in the report. The report also covers Business Model Analysis of NewGen Cards, Business Model Analysis of BNPL Cards and Business Model Analysis of Loan EMI Cards. Further report also focuses on the Indian Credit Card Market Segmentation By Purpose of Usage, By Payment System Operator, By Type of Credit Card, By Average Ticket Size of Loan Disbursement. Indian Credit Card Market report concludes with projections for the future of the industry including forecasted industry size by revenue by 2027, and analysts' take on the future highlighting the major opportunities.

Key Segments Covered in Indian Credit Card Industry

Indian Credit Card Market:
https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/indian-credit-card-industry/596370-93.html

By Purpose of Usage

Shopping/ Non-ATM Purpose
ATM Withdrawals

By Payment System Operator

Regular VISA
Peer to Peer Mastercard
Rupay
America Express
Others

By Type of Credit Card

Personal Credit Card
Commercial Credit Card

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By Average Ticket Size of Loan Disbursement

Less than Rs. 25,000
Between Rs 25,000- Rs. 50,000
Between Rs. 50,000- Rs. 100,000
More than Rs. 100,000
Business Model Analysis of NewGen Cards
Business Model Analysis of BNPL Cards
Business Model Analysis of Loan EMI Cards

Overview of India Credit Card Industry:
https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/indian-credit-card-industry/596370-93.html

Comparison of Indian Credit Card Industry with Other Countries
Value Chain Analysis of Credit Cards
Scope for the Credit card in Semi-Urban and Rural India

Key Target Audience

Credit Card Issuing Banks
New Gen Credit Cards Players
Traders Loan EMI Credit Cards Players
Banking Institutions Payment System Operators
Regulatory Bodies BNPL Credit Cards Players
FinTechs
Various International Digital Lending Platforms and Players
New Entrants in Credit Card Space
Potential Credit Card Users

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Time Period Captured in the Report:

Historical Period: FY'2017-FY'2022
Forecast Period: FY'2022-FY'2027F

Indian Credit Card Industry Players/Ecosystem

Credit Card Issuing Banks

HDFC Bank
SBI
ICICI
Axis Bank
IDFC Bank
RBL
IndusInd Bank
Citibank
Bank of Baroda
Standard Chartered Bank
Kotak Bank
South Indian Bank

New Gen Credit Cards

Slice
OneCard
UniPay Card

Loan EMI Credit Cards

Bajaj Finserv
Tata Capital
HDFC EasyEMI
Home Credit India

Cards BNPL Credit Cards

Simpl
ZestMoney
LazyPay
CASHe
PostPe
Amazon Pay Later
Flipkart Pay Later
Ola Postpaid
Paytm Postpaid
Flexmoney
ICICI PayLater

Payment System Operators

Visa
Mastercard
American Express
Rupay
UPI

Key Topics Covered in the Report

Overview and Genesis of Indian Credit Card Market
India Credit Card Industry Cycle
Overview of Credit Card Services/ Products
Consumption Expenditure and Borrowing Trends
Emerging business models- Loan against Credit Cards
Socio-Demographic Outlook of India
Economic Outlook of India
Bank Loan Rates
Financing Options in India
Overview of India's Banking Industry
Digital Payment Growth v/s Cash Payment Growth
India Credit Card Industry Introduction
Comparison of Indian Credit Card Industry with Other Countries
Ecosystem of Entities in the Indian Credit Card Industry
Value Chain Analysis of Credit Cards
India Credit Card Market Sizing on the basis of number of credit cards outstanding, Number of Credit Cards Issued by Issuer Bank. Credit Card Transaction by Volume & Value and Annual Credit Card Spend and Monthly Transactions
India Credit Card Market Segmentation (By Purpose of Usage, By Payment System Operator, By Type of Credit Card, By Average Ticket Size of Loan Disbursement).
Business Model Analysis of NewGen Cards
Cross Comparison of Major Players in the NewGen Cards Segment
Business Model Analysis of BNPL Cards
Cross Comparison of Major Players in the BNPL Cards Segment
Business Model Analysis of Loan EMI Cards
Cross Comparison of Major Players in the Loan EMI Cards Segment
Trends and Developments
Growth Drivers of the Indian Credit Card Industry
Restraints and Challenges
Alternative Assessment for NIP (No-Income-Proof) Customers for Credit Card Offerings
Collection risks associated with credit card
Key Metrics of Credit Card Issuers in India
Government Initiatives in the Indian Credit Card Industry
Pradhan Mantri Jan Dhan Yojana (PMJDY)
Pradhan Mantri Jan Dhan Awas Yojana (PMAY)
Initiatives to Promote Access to Data & Innovation
Regulatory Sandbox
Launch of India Stack
Recognising P2P Lenders
Increase in number of Fintech start-ups
Growth of Digital Lending,
Credit Growth in Rural India
Evaluation of KYC Norms
Company profile of major Bank players operating in the ecosystem (Bank Overview, About the Company, Business Model, Product Offered, Key Features, Strengths, Recent Developments and Key Takeaways)
Company profile of major FinTechs players operating in the ecosystem (Company Overview, About the Company, Revenue Model, Funding and Investors, Key Features, Fee Structure, Product Offered, Strengths, Recent Developments, Key Takeaways and Financials)
Analyst Recommendations
Industry Speaks

For More Insights On Market Intelligence, Refer To The Link Below: -

Indian Credit Card Industry

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Ken Research is a Market Research and Consulting Firm, based out of India, Indonesia and UAE. Since 2011, we have been assisting clients globally with our Syndicate and Bespoke Market Research and Advisory Services.

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