India Debit Cards Market Competition, Forecasts and Opportunities, 2029F
DUBLIN, Nov. 20, 2023 /PRNewswire/ -- The "India Debit Cards Market Competition, Forecast and Opportunities, 2029" report has been added to ResearchAndMarkets.com's offering.
The India debit cards market is experiencing robust growth, primarily driven by the rising popularity of online payment methods and the proliferation of digital transaction platforms in the country. The emergence of fintech companies, co-branded cards, and various government initiatives aimed at promoting debit card usage are significant contributors to the market's expansion in India.
In terms of card usage, credit cards hold a relatively small market share, accounting for 7% of all cards in use, while debit cards dominate the market with a substantial 93% share. The India debit cards market is segmented into various service providers, including Visa, Mastercard, RuPay, and others like Maestro Card. Visa and Mastercard are the dominant players in India's debit card market. The increased value of e-commerce transactions reflects the widespread shift from physical to digital transactions, especially since the onset of the pandemic.
High demand for debit cards in India can be attributed to changing consumer preferences, a growing affinity for technology-driven products, and government initiatives aimed at promoting digital payments. According to Worldline, there were 4,120 million debit card transactions totaling USD 90 billion in 2021. Of these transactions, 28.93 million occurred at point-of-sale terminals, and 21.36 million were conducted in the e-commerce space.
Debit card transactions at point-of-sale terminals accounted for USD 56 billion in value, while online transactions amounted to USD 29 billion. Additionally, the number of households with internet connections is expected to increase by 46%, growing from 160 million in 2021 to 233 million by 2026. With the rising penetration of smartphones and the internet, the India debit cards market is poised for significant growth in the coming years.
The expansion of the Indian economy has led to a surge in card usage across the country. Debit cards are becoming widely accepted as a preferred payment option, further driving growth in the Indian debit card market. The increasing adoption of digital payments, government initiatives to promote cashless transactions, and the availability of digital infrastructure and services are all key factors contributing to the market's growth.
India Debit Cards Market Drivers
Furthermore, increase in the number of debit cards was also attributed to the issuance of RuPay cards under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme. More than 68 million debit cards were issued by the program's launch in 2021. Thus, these initiatives have played a significant role in drivingthe growth of the debit card market in India.
India Debit Cards Market Trends
The banking sector is undergoing a digital transformation with new technologies and partnerships. Banks have been at the forefront of this shift in terms of payments, leading with a variety of digital innovations, but the most recent development has seen a rise in demand for co-branded credit and debit cards.
Co-branded debit cards have become popular in India, with banks partnering with various companies and brands to offer debit cards with added benefits and rewards. These co-branded cards often come with cashback offers, discounts, and other rewards that make them more attractive to customers.
For instance, PayPal Mastercard Debit Card is a co-branded card by Mastercard International and PayPal. It enables customers to make purchases at any Mastercard-accepting business globally using funds from their online PayPal accounts. Major companies have already adopted the trend of working with banks to offer co-branded cards to their clients for ease of payments, including airlines, hotels, e-commerce, and fuel companies.
Overall, the India debit card market is witnessing several trends, including contactless payments, mobile banking, co-branded cards, e-commerce partnerships, and enhanced security features. Thus, these trends are shaping the way customers use their debit cards and are driving innovation in the Indian financial services industry.
Furthermore, with the increasing risk of fraud and cybercrime, customers are becoming more concerned about the security of their debit cards. This can lead to a lack of trust in the debit card industry and make it difficult for banks to attract and retain customers. While debit cards are a popular payment method in India, they face competition from other payment methods such as mobile wallets and UPI.
For instance, In December 2022, the UPI registered more than 7.82 billion transactions costing USD160 billion, according to data released by the National Payments Corporation of India (NPCI). These payment methods offer a convenient and secure way to make payments, and their popularity could limit the growth of the debit card market in India.
Many banks in India are partnering with e-commerce companies to offer debit cards that can be used exclusively for online purchases. These debit cards often come with discounts, cashback offers, and other benefits that are tailored to online shoppers. Thus, with the increasing adoption of digital payments in India, the debit card market presents an opportunity to tap into this trend and offer a convenient and secure payment option to customers.
Voice of Customer Analysis
Impact of COVID-19 on India Debit Cards Market
Market Trends & Developments
India Debit Cards Market, By Payment Terminals:
India Debit Cards Market, By Card Type:
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