Growth Drivers of the Indian Credit Card Industry - Ken Research

1. With Only A 3% Penetration Rate, Will Credit Card Industry Sustain Growth In India? : Ken Research With the onset of the coronavirus pandemic, contactless payments have seen a huge spurt in demand, which has resulted in increased issuance of debit as well as credit cards in the country. Over the last few years, the credit card industry has grown significantly in India with many developments happening in the space which include various innovations and changes in technology. Credit card issuers are also making efforts to bring more innovation and awareness to the segment that will contribute to the growth of India’s credit card market. However, the adoption of credit cards has been fairly paltry across India, with only around 3% of the population having a credit card, which is way off the 30% benchmarks set by World Bank. The Indian middle class mostly has a conservative stance towards credit card usage, with belief that high fees would ultimately lead to no benefit, and hence restrain themselves to use credit cards, which is definitely not a good sign. So, will the credit card industry in India sustain its positive growth in the future? Let’s find out. 1. The financial services sector has witnessed a massive shift towards digital technology; growth is primarily driven by retail loans and increasing penetration of credit cards in the economy Request a Call with Expert to know more about the business model

2. 2. The Credit Card Industry is currently in its growth stage, with Credit Card issuance growing at a roughly 20% CAGR over the last 5 years 3. Introduction of BNPL & increasing popularity of contactless payments post-pandemic among others is contributing to enhancing the adoption of Credit cards in the Indian Market 4. Adoption of Cashless Society coupled with adoption of usage of credit cards at Transit Systems are driving the Credit Card Industry Growth in India

3. 5. To expand the consumer base and include NIP customers, Alternate Assessments like Employment letters, Fixed Deposits, Add-on cards, and Healthy bank balances are done 6. Though the Credit Card consumer base is at the expansion stage, there are a few challenges associated such as new regulations, and low penetration

4. 7. However, Indian government is performing a major role in the journey of credit card adoption and helping the industry to thrive in the country with a CAGR of ~24% in the future. Some of the Intelligence Curated by Ken Research in Credit-Card Space: Asia Credit Cards Market Outlook to 2025 - By Commercial and Personal Credit Cards; By Transactions at ATM and POS Terminals; by Total Cards in Circulation; Transaction Value and Volume through Issuers and Operators; and by Countries (Japan, South Korea, India, China, Indonesia, Philippines, Singapore and Others

5. Turkey Cards and Payments Market Outlook to 2023 – Rapid Acceptance of TROY Cards and Contactless Cards Coupled with Rising Penetration of Credit Cards to Drive Market Growth Saudi Arabia Cards and Payments Market Outlook to 2023 – Increasing Penetration of Islamic Credit Cards Coupled with Rising Preference for Online Shopping to Drive Market Growth Brazil Cards and Payment Market Outlook to 2027F By Cards (Debit Cards, Credit Cards, Prepaid Cards), By Payment Terminals (POS and ATM's), By Payment Instruments (Credit Transfers, Direct Debit, Cheques, Cash and Payment Cards) Malaysia Buy Now Pay Later Market Outlook to 2027F Driven by Digitalization, Rising Tech-Savvy Population, Increasing M&A Deals, Partnerships between BNPL players and Banks along with shifting preference towards BNPL To Know more about this Whitepaper, Visit this link:- Indian Credit Card Industry