Volume of credit card transactions is projected to expand at CAGR of ~26.43%
The total value of credit card transactions in India is expected to reach Rs.51.72 trillion by FY 2027, expanding at a CAGR of 39.22% from FY 2022, says a report by ResearchAndMarkets on 14 Mar 2022.
The volume of credit card transactions is projected to expand at a CAGR of ~26.43% during the forecast period (FY2022-27), said the report “Credit Card Market in India 2022”.
In FY 2021, a significant increase in the value of credit card transactions was witnessed. This rise was the result of a surge in the number of transactions per credit card and cardholders. The banking system reported over 1.2 million new credit card additions in November 2021.
The credit card market is smaller than that of the debit card. Commercial banks in India such as State Bank of India, HDFC Bank Limited, and ICICI Bank Limited, and Kotak Mahindra Bank Limited, as well as international firms such as American Express and City Bank are the major players in the market.
In the wake of the pandemic, the National Payments Corporation of India (NPCI) encouraged customers and providers of emergency services to adopt digital payment systems, ensuring the safety of contactless transactions.
As a result, transactions increased to some extent. However, reduced international travel due to restrictions imposed during the 2020-2021 period negatively impacted credit card usage during that time. Revenue levers are likely to be hard to pull as several customers are unwilling to use credit cards frequently.
Therefore, various cost management strategies need to be adopted by issuers to attract customers and attain a competitive and robust future for the credit cards market.
The Competitive Landscape: Axis Bank Limited, HDFC Bank Limited, ICICI Bank Limited, Induslnd Bank Limited, Kotak Mahindra Bank Limited, State Bank of India, American Express, Citibank, Hong Kong and Shanghai Banking Corporation and Standard Chartered Bank Limited. fiinews.com
