RISING consumer spending is expected to drive card payments in India to Rs 60.2 trillion ($728.2 billion) in 2027, about a threefold jump from Rs 21.7 trillion ($262.1 bn) in 2022, according to GlobalData.
The analytics company predicted that the value of card payments, which registered a 26.2 per cent rise in 2022, could grow at 28.6 per cent during the current year to reach 27.9 trillion ($337.2 bn).
Its forecast is based on “improving economic conditions” in the south Asian nation of 1.4 billion people.
S&P Global said in its most recent report that the Indian economy is expected to grow at an average rate of 6.7 per cent between 2023/24 and 2030/31, nearly doubling the country’s GDP size from $3.4 trillion to $6.7 trillion during the period.
GlobalData said the post-pandemic recovery in card payments was mainly driven by credit and charge cards, with this card category growing by 53 per cent in 2021 and 46.7 per cent in 2022.
It attributed the rise to increased spending on travel, accommodation, restaurants, and transportation.
Loyalty programmes and reward benefits such as discounts and instalment facilities are also aiding credit and charge card growth, the London-based analytics company said, predicting the trend to continue this year with an expected growth of 38.1 per cent.
However, debit card payments are expected to grow at a relatively modest pace of 9.5 per cent during the same period.
GlobalData’s lead banking and payments Analyst Ravi Sharma said India made robust progress in the adoption and usage of card payments supported by improvement in payment infrastructure.
Constant efforts by financial authorities to increase financial inclusion and boost cashless payments also drove the trend, he said.
Card payments in India expected to jump threefold by 2027: report
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