Archive · 5 Jun 2025
Credit Card Spending Surges in India's Smaller Cities
India's credit card market is growing fast!
More people are using credit cards, especially in smaller cities.
People are traveling more, and digital payments are becoming more common.
Also, online shopping is a major driver.
Banks are still cautious, but the market has big potential.
Indians are now looking for more than just cashback and rewards when using their credit cards.
India has a large untapped credit card market with significant growth potential.
Increased card usage is linked to international travel and digital payment adoption.
Over 60% of card payments occur in 'card-not-present' transactions like online shopping.
Credit card spending in tier-2 and tier-3 cities grew 4x compared to pre-COVID levels.
Consumers seek experiences, privileges, and benefits from credit cards.
- Who
- Sandeep Ghosh, Group Country Manager at Visa India & South Asia
- What
- A surge in credit card spending
- When
- The pre-COVID period
- Where
- India
- Why
- Due to increased travel, e-commerce, and acceptance of digital payments.
- Credit Cards in Circulation
- 110 million
- Unique Credit Card Users
- 50 million
- Credit-Eligible Without Cards
- 100 to 150 million
- Card Payments are Online
- 60%
- Spending Growth in Tier-2/3 Cities (Pre-COVID)
- 4x
- Spending Growth in Tier-1 Cities (Pre-COVID)
- 1.5x