India’s payment card transaction value (including point-of-sale (POS) payments and ATM cash withdrawals) is estimated to reach ₹59.2 lakh crore in 2025, supported by growing preference for electronic payments and a rise in consumer spending. As part of its GST 2.0 reforms, the government also decreased the tax rate on daily essentials, electronics, automobiles and health care effective from 22 September 2025, effectively reducing their prices, which is likely to stimulate consumer spending, boosting the overall card usage, according to the latest GlobalData report.

GlobalData’s Payment Card Analytics reveals that card payment value (including payments at POS and initiated remotely) in India registered a growth rate of 7.8% in 2024 to reach ₹27.5 lakh crore. Amid the rising consumer spending, decreasing interest rates and inflation, card payments are estimated to reach ₹30.1 lakh crore in 2025, registering a higher growth rate of 9.4%. Conversely, the usage of cards for ATM cash withdrawals is on decline, with the total ATM cash withdrawals value set to decline by 4.9% in 2025e.

Yasaswini Pujitha, banking and payments analyst at GlobalData, says while digital wallets and cash remain widely used for payments in India, payment cards are also gradually gaining popularity. “This trend is driven by a growing banking population, rising awareness of the benefits of payment cards and associated benefits such as reward programs and instalment facility. The Reserve Bank of India (RBI) initiatives, such as reducing merchant service fees coupled with continued expansion of payment infrastructure, have encouraged wider acceptance of payment cards among merchants as well.”

Card payments represent 50.8% of the total payment card transaction value, slightly outpacing ATM cash withdrawals in 2025e. The RBI announcement to increase ATM withdrawal fees from ₹21 to ₹23 for transactions exceeding the monthly limit of five free withdrawals, from May 2025, is expected to further discourage cash withdrawals, says the report.

In an effort to encourage card payments, the government has also eliminated merchant service charges on RuPay cards. “Aggressive marketing strategies by Indian banks, such as discounts, cashback offers, reward points and flexible payment options on credit cards, coupled with the growing number of merchants accepting card payments, are also expected to increase the payment card usage in the country.”

Another important factor contributing to this uptrend is the availability of instalment facilities. Most of the country’s major banks offer instalment payment facilities, enabling consumers to convert large-ticket purchases into monthly payments. 

However, despite growth in card payments, the overall card payment frequency remains lower at 6.9 transactions per card in 2025e, according to the data. The factors attributed to this are comparatively lower card penetration, limited merchant acceptance among merchants, especially in rural and remote areas, as well high preference for UPI-based mobile payments among consumers and merchants.

UPI has dented the card usage massively. “With all digital wallets integrated into the UPI platform, offering real-time, cost-free financial transactions, Indian consumers and merchants are opting for this payment method, which in turn is restricting the wider adoption and usage of cards,” the GlobalData report says. However, in the next five years, India’s card payment landscape is expected to record sustained growth. The growth will be supported by the digitalisation of financial services, consumer preference for electronic transactions, RBI regulations, and improving payment acceptance infrastructure, says Pujitha.