Finance & Economics

Card payments in India to surpass $300B mark in 2022: report

India made remarkable progress in the adoption of digital payments in recent years

India

Card payments in India to surpass $300B mark in 2022: report. Source: pexels.com

According to GlobalData, the card payments market in India is expected to grow by 31.2% in 2022 to reach $305.4 billion, driven by economic recovery post-COVID-19 pandemic, widespread vaccination program and gradual recovery in consumer spending.

In fact, India was among the worst-hit countries with the second-highest number of COVID-19 cases globally, following the US. However, there has been robust economic recovery supported the government’s swift measures and rapid vaccination program.

Source: GlobalData

Besides, GlobalData’s Payment Cards Analytics has found that the value of card payments in India registered a decline of 10.8% in 2020. Nevertheless, with gradual economic recovery, card payments are forecasted to increase by 30.7% in 2021 to reach $232.7 billion.

India, which has traditionally been a cash-dominated economy, is now observing a rapid shift towards electronic payments. Although, lockdown measures amid COVID-19 affected the country’s card payments market, the pandemic also highlighted the importance of digital payments. With India now on path to normalcy, card payments are expected to rise further in the coming years
Nikhil Reddy, Payments Senior Analyst at GlobalData

The rising adoption of contactless card payments is also expected to drive card payments in India. Although contactless card payment is not very popular in India, it has gained traction during the pandemic due to rise in demand for contactless payments.

To push contactless payments, payment limit was raised from $27.4 to $68.5 in January 2021. The acceptance of contactless card payments among merchants is also on rise with over one-fourth of total POS terminals installed in the country now supporting contactless payments.

We’ve reported that Barclays gets an Australian banking license.

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