India's Cashless Payments to Reach $728 Billion by 2027, says Report from Global Data
A report from GlobalData, a data and analytics company, India's card payments market is expected to nearly triple from $262.1 billion in 2022 to $728.2 billion in 2027, driven by rising consumer spending.
According to GlobalData's Payment Cards Analytics, the value of card payments in India will increase by 26.2% in 2022, owing to improving economic conditions. This trend is expected to continue in 2023, with revenue expected to increase by 28.6% to $337.2 billion.
"India, which is primarily a cash-driven economy, has made significant progress in the adoption and use of card payments, aided by improvements in payment infrastructure and ongoing efforts by financial authorities to increase financial inclusion and boost cashless payments," said Ravi Sharma, Lead Banking and Payments Analyst at GlobalData.
The post-COVID-19 pandemic recovery in card payments was mainly driven by credit and charge cards, with this card category growing by 53.0% in 2021 and 46.7% in 2022, as consumer spending increased on travel, accommodation, restaurants, and transportation. Loyalty programs and reward benefits such as discounts, and instalment facilities are also aiding credit and charge card growth. This trend is expected to continue in 2023, as credit and charge card payments are expected to grow by 38.1%.
Debit card payments, on the other hand, are expected to grow at a slower pace of 9.5% during the same period. Experts said as eCommerce brands continue to penetrate deeper into the remote roots of the country, cash on delivery will continue to be prominent - despite growth of digital payments.