Credit card transactions have skyrocketed over the years, with the transaction volume increasing from 208.7 crore in 2019 to 447.2 crore in 2024, while the value increased from ₹7.1 lakh crore to ₹20.4 lakh crore. | Photo credit: Kunakorn Rassadornyindee
Private sector banks continue to dominate the credit card space in India and are focusing on digital and co-branded offerings for customers. Their market share has increased from 65.8 percent in June 2020 to 70.8 percent in June 2025, according to the latest Reserve Bank of India (RBI) report.
The share of public sector banks (PSBs) grew from 22.5 percent to 24.1 percent during the same period. In contrast, the market share of foreign banks saw a sharp decline, from 11.7 percent to 4.1 percent, as their outstanding credit cards fell from 67 lakh to 45 lakh cards. Small finance banks (SFBs), meanwhile, have issued 10 lakh credit cards by June 2025.
Credit card transactions have skyrocketed over the years, with the transaction volume increasing from 208.7 crore in 2019 to 447.2 crore in 2024, while the value increased from ₹7.1 lakh crore to ₹20.4 lakh crore. During January-June 2025, 266.3 crore transactions were recorded amounting to ₹11.1 lakh crore.
However, the number of debit card transactions has shown a decline since 2019, both in volume and value. In total, there were 111.64 crore outstanding cards in India as of June 2025, including 11.12 crore credit cards and 100.52 crore debit cards.
Broader payment systems
The report notes that the broader payments ecosystem in India has seen sharp growth in recent years. In terms of volume, payment transactions grew from ₹3,248 crore in 2019 to 20,849 crore in 2024, and, in terms of value, from ₹1,775 lakh crore to ₹2,830 lakh crore during this period. In the six months ended June 2025, the transaction volume was ₹12,549 crore, amounting to ₹1,572 lakh crore.
“The LVPS managed by CCIL includes the government securities market, forex clearing and rupee derivatives markets. Over the past few years, the CCIL transactions have witnessed an increasing trend. In terms of volume, they have increased from ₹35 lakh in CY 2019 to 45 lakh in CY 2024, while in terms of value, they have increased from ₹1,270 lakh crore to ₹2,780 lakh crore during this period period. During the first half of 2025, a total of 28.8 lakh transactions worth ₹1,734 lakh crore were recorded,” the report said.
UPI has now become the most widely used retail rapid payment system (FPS) in India due to its efficiency, 24-hour availability and ease of use. In January-June 2025, the volume of UPI transactions was ₹10,637 crore, translating to a value of ₹143.3 lakh crore. The lower average ticket size of UPI transactions indicates that UPI is mainly used for small value transactions.
Risks of remittances and cross-border payments
The RBI report said India remains the largest recipient of global foreign remittances, with a record inflow of $137.7 billion in 2024 – more than double that of Mexico, the second highest recipient at $67.6 billion. The US, meanwhile, consistently leads global remittance outflows, sending $98.4 billion in 2024, significantly more than other countries such as Saudi Arabia and Switzerland, which contribute $46.6 billion and $37.8 billion respectively. Remittance outflows from Switzerland and Germany have also increased overall, the report said.
Among the emerging themes likely to shape cross-border payments, geopolitical risk stands out as particularly impactful, the regulator said. Geopolitical tensions pose significant risks to cross-border payments and financial flows, given the centralized nature of the global financial infrastructure and its dependence on certain settlement currencies.
“Sanctions, restrictions on financial systems or currencies and other operational barriers can disrupt markets and access. Affected countries can respond by developing bilateral or multilateral alternatives to protect against such disruptions,” the report said.
Published on October 23, 2025
#Private #banks #dominate #credit #card #market #share #foreign #banks #losing #ground #RBI