Credit Card Spend Value Quadruples Since 2019; Debit Card Usage Continues Structural Decline
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The Big Picture
India's card payment ecosystem has undergone a fundamental structural shift over the past six years. Credit card transaction value surged from ₹3.4 lakh crore in H1 2019 to ₹11.1 lakh crore in H1 2025 — a 3.3× increase driven by expanding card issuance, rising consumer credit appetite, and accelerated adoption for online and lifestyle purchases.
Why It Matters
The divergence signals a two-track digital finance evolution. While affluent consumers deepen credit engagement through rewards and EMI options, the mass market has pivoted to UPI as the default transaction layer. Debit card spending has fallen 31%, increasingly relegated to ATM withdrawals.
Key Insights
Credit Becomes Consumption Backbone
Credit cards have evolved from a niche urban product to a mainstream spending instrument, supported by fintech-led co-branded cards, EMI conversions, and reward-led usage.
UPI Crowds Out Debit
UPI's instant, zero-cost convenience has cannibalised debit card usage for routine payments, pushing debit cards back toward ATM withdrawals and low-frequency utility spends.
Polarised Growth Curve
The gap between credit and debit usage highlights India's two-track digital finance story — affluent consumers deepening credit engagement, while the mass base uses UPI.
The structural divergence between credit and debit card usage reflects India's evolving payment landscape. Credit cards are becoming the preferred instrument for high-value purchases and online transactions, while UPI dominates everyday payments. This trend has significant implications for banks, fintechs, and the broader consumer credit ecosystem.
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