Credit Card Trends in 2025: What Indian Consumers Need to Know

Bhiwadi, India - March 2025: The Indian credit card market is witnessing a transformative shift in 2025, driven by millions of digital payments per second, changing consumer preferences, and continuously growing adoption in Tier-II and Tier-III Cities all over india. With new fintech collaborations with banks, new cashback benefits, reward programs, lifetime free offers, and UPI-linked credit products tailored for self-employed individuals and young professionals, India's credit card landscape is evolving rapidly.

According to industry insights and RBI data, credit card issuers are focusing on contactless payments, flexible rewards, cashback, UPI linked RuPay cards and deepening market penetration in smaller cities due to this The credit card industry in India has witnessed a compound annual growth rate (CAGR) of 20% in the last five years.

Fintech companies are also partnering with traditional banks to offer co-branded credit cards, like the Federal Scapia Credit Card, which provides a lifetime-free membership and attractive travel rewards.

Also, Jupiter Money a neo-banking fintech platform launching a New EDGE RuPay Credit Card with 10% cashback on shopping from a leading online shopping platform such as Amazon, Flipkart, Myntra, TataCliq, Nykaa, and Ajio.

The news report source: https://easemoney.in/news/jupiter-edge-rupay-credit-card-cashback-upi/

Key Credit Card Trends in India for 2025

1. Historically, There are 65% of India's credit card usage has been focused in Tier-I cities such as Banglore, Mumbai, and New Delhi. However, the growth of digital commerce and increasing salaried professionals in cities like Surat, Nashik, Gwalior, Bhopal, and Kanpur are driving new demand for credit cards in Tier-II and Tier-III regions. Banks and fintech companies are responding with customized offerings, RuPay cards, making credit cards more accessible in these areas.

The Impact of the RuPay Card increases the user expenses in india due to the scan & Pay method to any store nearby you.

2. Rising Credit Card Adoption Among Self-Employed and Young Professionals

Teenagers, Self-employed professionals, young employees, freelancers and students aged between 18 to 25 years traditionally face lots of challenges while applying for a credit card due to a lack of credit history, and rarely took loans before. However, in 2025, there are many financial institutions such as Zed Partner, IDFC Bank, Onecard, Paisabazaar, Kotak 811, and Magnet Company with FD-secured cards addressing the gap by introducing low-limit and secured credit cards, designed to help individuals build creditworthiness.

3. Shift in Rewards and Loyalty Programs

Cashbacks, instant discounts, no-cost EMI, no down payment programs, and customized reward programs are replacing the traditional "reward points-based" system. Hybrid rewards programs that combine issuer-funded and merchant-funded benefits are becoming popular, as they provide more personalized and dynamic value to customers.

4. Growth of Co-Branded and Fintech-Backed Credit Cards 2024-2025

Almost all Indian banks including SBI, HDFC, and Axis Bank are increasingly collaborating with fintech companies such as Bankbazaar, Samsung, TATA, Reliance, and Patanjali to introduce innovative credit card products. A case study of the Federal Scapia Co-branded Credit Card shows how fintech + bank partnerships can create travel-focused benefits with high rewards on digital bookings. Such collaborations are expected to expand further in 2025.

5. Contactless Payments, BNPL (Buy Now, Pay Later) and RuPay integration

The trend, especially of more and more use by people of the upi App, is having the effect of bringing credit cards with contactless and Buy Now, Pay Later features, so that users can spread their payments into EMIs or even over a longer period. Such trends are motivating consumers' tendencies towards the daily utilization of credit cards.

After RuPay Integration, RuPay's credit card market share has seen a significant increase, reaching 12% in 2024, up from 3% in 2023, indicating a growing preference for RuPay credit cards on UPI.

Report Source: https://www.moneycontrol.com/technology/rupay-s-credit-card-market-share-rises-to-12-percent-in-2024-transaction-volume-growing-20-monthly-article-12916512.html

Expert Insight for India Credit Card Market 2025:

According to Nanne Parmar, fintech expert and Finance Author at Google Scholar: The Indian credit card industry is at a turning point. We are seeing increased adoption beyond metros, a rise in fintech-backed cards, and a fundamental shift in how rewards are structured. The combination of digital-first experiences, UPI integrations, and flexible payment models is making credit cards more appealing than ever.

Easemoney Fintech Pvt Ltd
Building no. 5/389 UIT Sector 5 Bhiwadi, Raj India 301019
Email: Nanneparmar@easemoney.in
Phone: 8076416971

About EaseMoney
EaseMoney is a rapidly growing fintech platform dedicated to simplifying personal finance for Indian consumers. Founded by Nanne Parmar, a seasoned fintech expert, EaseMoney provides insightful financial content, news, and analysis on credit cards, loans, investments, banking, and fintech trends.

With a strong focus on transparency and education, EaseMoney empowers users with up-to-date financial news, expert-backed guides, and in-depth comparisons to help them make informed money decisions.

Enterprises Involved
EaseMoney collaborates with major financial institutions, fintech startups, and banking platforms to deliver accurate, data-driven insights. The platform also works with industry experts, journalists, and analysts to ensure high-quality financial reporting.

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This release was published on openPR.