- 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
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
- 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
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