India Cards and Payments Market Size, Share, Development, Growth and Forecast to 2020
- June 2016
- 64 pages
- Report ID: 4402406
Historical market size for the period 2012-2014 and forecast for the period 2015-2020.
Number of cards in cirulation, and value and volume of transactions.
Number of terminal, and value and volume of transactions.
Industry trends, drivers, and opportunities.
Competitive Landscape of card issuers for both, debit cards and credit cards.
Major schemes, debit and credit cards by customer segments.
The study is based on extensive secondary and primary research. The various sources studied during the secondary research include websites of payment/ banking/ industry associations, industry regulatory bodies, banks, and card issuers. The primary research included in-depth interviews with industry experts and key opinion leaders.
India cards and payments market overview
In terms of number of cards in circulation, the Indian payment cards market is expected to grow at a CAGR of 10% over the period 2015-2020. The growth of cards in circulation in India, can be attributed to expansion of ATMs and POS terminals, growing disposable income and greater acceptance of payment cards in the country.
India GDP per capita increased from INR 80,358.3 in 2012 to INR 98,291.4 in 2014. GDP per capita is likely to increase further over the forecast period to INR 1,89,985.8 by 2020. The increase in GDP per capita income levels is expected to increase the scope of payment cards use over the forecast period.
Debit card dominated the Indian card payments market is terms of number of transactions and value of transactions. Debit card penetration per 100 inhabitants increased from 27 in 2012 to 37 in 2014. The growth of the debit card was fueled by consumer perceptions that they provide control on spending, and is safe to use. Debit cards are used by consumers to shop at retail outlets, withdraw cash from ATMs and make online payments. State Bank of India was the leading bank in terms of the number of debit cards issued in 2014, accounting for around one third of the total number of debit cards issued in India.
Credit cards are primarily used by consumers at POS terminals for retail purchases, rather than for cash withdrawals at ATMs. Visa was the leading scheme in the credit card market in 2014. Charge cards have a very minor share in the payment cards market. Over the period 2012–14 charge cards recorded a CAGR of 4%. In 2014, there were 0.5 million charge cards in India, with only 0.1% share of the total payment card market.
In January 2016, Yes Bank partnered with MasterCard to launch “YES InControl”, a technology to control debit card spends. YES InControl will allow YES BANK customers to control their debit card usage. By using the technology, customers can customize the usage parameters and limits for their Yes Bank debit cards for better safety.
Key players in the Indian cards and payments market:
State bank of India
Punjab National Bank
Axis Bank Ltd
HDFC Bank Ltd
ICICI Bank Ltd