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India Country Report

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  • Published Date: September 2019 – Update to be published April 2021


A comprehensive overview of the cards, payments, consumer banking and merchant acquirer market in India.

What you will learn from this India payments research report:

  • How the Indian government and the central bank is working to stimulate digital payments.
  • What alternative digital payment options are rapidly gaining ground in India.
  • Who the new P2P players entering the Indian market are and how they pose a threat to market leader Paytm.
  • How the India credit card market could be set for rapid expansion.
  • How QR codes are set to revolutionise payment acceptance in India.


  • India is arguably the fastest growing payments market globally, yet massive untapped potential remains as the population migrates to non-cash payments.
  • Cash remains an important component of the Indian economy, but digital payments are growing rapidly with alternative acceptance infrastructures being rolled out to support them.
  • The government and RBI have been aggressive in their promotion of digital payments, putting regulation and infrastructure in place to stimulate the market.
  • The Indian government's latest proposal, to abolish merchant fees for digital payments is designed to stimulate the market further but could equally discourage investment with a key revenue source removed.
  • Advances in the payments infrastructure such as the Unified Payments Interface (UPI) has enabled mobile payments in India to develop rapidly.
  • POS terminal penetration remains low despite strong growth, but a focus on QR code acceptance is allowing for broader non-card payment acceptance, pulling smaller merchants into the digital payment fold.
  • The Indian credit cards market is small but is set for rapid expansion as banks and new players such as Paytm look beyond the small, affluent segment.
  • RuPay debit has successfully challenged the global networks but it remains to be seen if it can repeat its success in credit cards.
  • Debit cards are still mainly used for cash withdrawals in India but overtook credit card purchase volume in 2017 and are also increasing healthily in online spend.
  • Competition in the digital payments space is heating up. Paytm remains the largest mobile wallet and P2P provider in India, but it is not insulated from competition.

India Payments Research | Report Contents

Key Topics
Demographics and the economy
Payments environment
India cards market
Mobile payments
Profit pool
The networks
Key retail banks and issuers
Acquiring and processing
Online acquiring
Regulatory and other cards market information

Appendices: Card Market Data

Appendix I: Demographics and the economy

  • Demographic and economic indicators
  • Ownership of key consumer devices
  • Internet usage by population

Appendix II: Card payments environment

  • Access points
  • Account penetration
  • Consumer payment trends
  • B2C e-commerce payment methods

Appendix III: Cards market

  • Total cards payment metrics
  • Contactless cards metrics
  • India credit card data numbers
  • Total credit cards metrics
  • Credit cards profitability indicators
  • Debit cards numbers
  • Debit cards metrics
  • Appendix IV: Mobile payments
  • Mobile proximity payment metrics
  • Mobile P2P payments

Appendix V: Profit pool

  • Profit pool

Appendix VI: The card networks

  • Networks' credit card market shares
  • Networks' credit card numbers
  • Networks' credit card billed volume
  • Networks' number of credit card transactions
  • Networks' average credit card transaction value
  • Credit card interchange fees by network
  • Networks' debit card market shares
  • Networks' debit card numbers
  • Networks' debit card billed volume
  • Networks' number of debit card transactions
  • Networks' average debit card transaction value
  • Debit card interchange fees by network

Appendix VII: Key retail banks and issuers

  • Key credit card issuers market shares by credit card numbers
  • Key issuers market shares in credit card outstandings
  • Key debit card issuers market shares by debit card numbers

Appendix VIII: Acquiring and processing

  • Merchant acquirer credit card market share
  • Credit card merchant service charges
  • Merchant acquirer debit card market share
  • Debit card merchant service charges
  • Credit card issuer/issuing processor relationships
  • Credit card acquirer/acquiring processor relationships
  • Credit card issuing processor market shares by card numbers
  • Credit card acquiring processor market shares by the number of POS transactions

Appendix IX: Online acquiring

  • Online merchant acquirer market share

India Country Report | Selected Extracts

Demographics and Economy:
With an average annual population growth rate of 1.1%, India is projected to become the world's most populous country, overtaking China, by 2025. Currently, it has a population of around 1.3 billion.

Payments Environment:
Card use is steadily growing among the population. The number of cards in circulation surpassed a billion in 2018. Growth in the cards market has been driven by the establishment of the Rupay domestic card scheme.

Cards market:
One of the most significant developments in progressing card uptake in India was the launch of the domestic cards payment network, RuPay, by the National Payments Corporation of India (NPCI). Regional rural banks and small commercial banks ... have benefited.

Mobile Payments:
The surge in the number of mobile phone and internet users indicates that the digital payments market has huge potential – a potential that is already being tapped. A recent Credit Suisse report states that the digital payments market, led by mobile, will grow to an estimated $1 trillion by 2023.

Profit Pool:
Rollover rates are estimated to be around 44% with most major issuers thought to be in or around this mark. Net interest income is the main revenue stream accounting for an estimated 43% of the total revenue pool in 2018.

Card Networks:
Visa and Mastercard are the two primary networks in India, with a combined market share of 95% of credit cards in issue at the end of 2018. India's domestic cards payment network RuPay, RuPay's market share in terms of card numbers grew to 50% by the end of 2018 ... and the market leader in terms of cards in issue.

Key Retail Banks and Issuers:
The rise of digital payments and the security challenge thereof is of great concern; improved vigilance and security measures will be required to guide the Indian economy, banks, and financial sector into the era of advanced digital payments.

Acquiring and Processing:
The number of POS terminals operating in the country increased to almost 3.6 million at the end of 2018. Despite strong growth, this represents just over three POS terminals per 1,000 adults.

Online Acquiring:
Total online acquired card billed volume for 2018 reached almost $56 billion as the industry continues to grow. The top three categories for online transactions in India are apparel, online bill payments and cinema tickets.

Regulatory and Markets Information:
Scheduled banks are paid up in capital, hold a cash reserve ratio with the Royal Bank of India, can borrow from the RBI, and can become a member of a clearinghouse. Non-scheduled banks can do none of these things and maintain a cash reserve ratio with themselves.

India Payments Trends | Entities Referenced

Aditya Birla Idea – AEBC – Air India – Airpay – Airtel – Alibaba – Allahabad Bank – Amazon Pay – American Express – Andhra Bank – AnyPay – Atos Origin – Atos Worldline – Axis Bank – BabyOye – Bank of Baroda – Bank of India – Bank of Maharashtra – Bengaluru Metropolitan Transport Corporation – BharatPe – BOB Financial Solutions – BookMyShow – Carlyle Group – Cashfree – CCAvenue – Citibank – Citrus Pay – Credit Suisse – Diners Club – Discover – E-Billing Solutions – Etihad – Ezetap Mobile Solutions – Facebook – Fastacash – Federal Bank – Ferrari – Fina – First Data – FirstCry – Flipkart – FreeCharge – FSS – GE Capital – Google Pay – HSBC – ICICI Bank – ICICI Merchant Services – India Post – IndusInd Bank – ING Vysya Bank – Ingenico Group – Instagram – Instamojo – IRCTC – Jabong – JCB – Jet Airways – Jio – Junopayments – Karnataka Bank – Karur Vysya Bank – Kotak Mahindra Bank – Lakshmi Vilas Bank – Life Insurance Corporation of India – MakeMyTrip – Manchester United Football Club – Mastercard – Mobikwik – Mswipe Technologies – Naspers – National Payments Corporation of India – Oberthur Technologies – Ola – Ola Money – Online Prasad – Oriental Bank of Commerce – PayPal – Paytm – PayU – PayZapp – PayZIPPY – PhonePe – Ping Pay – Prizm Payments – Punjab National Bank – Razorpay – RBL Bank – Reserve Bank of India – Royal Bank of Scotland – RuPay – SBI Bank – Shopo – Snapdeal – South Indian Bank – Standard Chartered – Suvidhaa Infoserve – Swadhaar FinServe – Swipeon – Tech Mahindra – TechProcess Payment Services – Tencent – Uber – Union Bank – Union Bank of India – UrbanClap – Venture Infotek – Verisk Financial Research – Visa – Vodafone M-Pesa – Walmart – WeChat Pay – WhatsApp Pay – Wibmo – Wirecard – Yatra – Yes Bank – Zaakpay


Verisk reports delivering market and competitor intelligence on payments cards, e-money, acquiring/processing, retail banking, and consumer credit in the Asia Pacific region. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and Asia Pacific experts.

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