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India Cards & Payments Market Report

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  • Published Date: July 2022

INDIA CARDS & PAYMENTS MARKET REPORT

The report from Argus Advisory Research provides a comprehensive overview of the cards, payments and consumer banking market in India, with clearsighted commentary backed by relevant data.
The report details key performance indicators for the Indian cards market as well as e-commerce, finch and mobile payments, credit card profitability, card networks, card issuers, merchant acquiring and the regulatory environment. Data tables contain detailed figures on transactions and volumes from 2016 to 2021, with estimates and forecasts of the Indian card payments industry to 2025.
In an uncertain geopolitical environment, the Indian authorities are increasingly aware of payments' strategic value, with central bank regulation exceptionally influential.
The value of mobile proximity payments is set to reach almost 80 per cent of card purchase volume during 2022: ample revenue opportunities abound for players who can find a way to bring something new to a payments-savvy populace.

Lessons from this India payments report:

How the Indian market is evolving as rearchitecting continues.
The effect of the pandemic on spending habits.
Profiles of major players in the hot mobile payments space.
Why acquiring in India remains highly dynamic.
The rising value of mobile proximity payments.
How QR code acceptance has proliferated.

INDIA COUNTRY REPORT | KEY FACTS

  • Despite a decrease in usage during the first year of Covid, cash remains an integral part of the Indian retail payments ecosystem. However, this implies that many payments could be migrated to digital.
  • The total value of card purchase transactions declined by 7.3 per cent during 2020, but the following year saw this metric grow by 20 per cent compared to 2019.
  • There has been sustained growth in the number and value of online card transactions: online credit card purchase volume now exceeds card present.
  • Total industry-wide credit card profitability declined by 74 per cent during 2020 on the back of less travel, a decrease in revolve rates and an uptick in net credit losses.
  • The value of mobile transfers and payments carried out via consumer-facing interbank system UPI has exploded recently.
  • QR code acceptance has multiplied in recent years and, with 30 million merchants, dwarfs traditional POS terminals.
  • While Visa and Mastercard dominate the Indian credit card networks space, domestic scheme RuPay has grabbed a significant slice of the debit card pie.
  • HDFC is the leading credit card issuer ahead of SBI Card. SBI is the dominant debit card issuer.
  • India's HDFC Bank, Axis Bank and ICICI Merchant Services command over 80 per cent of the acquiring market.

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India Payments Research | Report Contents

TABLE OF CONTENTS
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.

India Country Report Data Tables
(All 2016-25F unless otherwise stated)

1: Demographic and economic indicators.
2: Ownership of key consumer devices.
3: Internet usage by population.
4: Access points: 2016-23F.
5: Account penetration.
6: Consumer payment trends: 2016-23F.
7: B2C e-commerce payment methods: 2016-23F.
8: Total cards payment metrics.
9: Contactless cards metrics.
10: Credit card numbers.
11: Total credit cards metrics.
12: Credit cards profitability indicators.
13: Debit cards numbers.
14: Debit cards metrics.
15: Pre-paid/e-money card metrics.
16: Mobile proximity payment metrics.
17: Mobile P2P payments.
18: Profit pool: credit card numbers, billed volumes, oustandings, interest incomes, net interest revenues, merchant revenues, card fee revenues, other non-interest incomes, total revenues, net credit losses, operating expenses, total expenses, pre-tax profits, merchant service charges, rollover rates, APR, net credit losses to outstandings, operating costs to revenues, ROA (pre-tax profits to outstandings).

(All 2016-23F below unless otherwise stated)

19: Networks' credit card market shares.
20: Networks' credit card numbers.
21: Networks' credit card billed volume.
22: Networks' number of credit card transactions.
23: Networks' average credit card transaction value.
24: Credit card interchange fees by network.
25: Networks' debit card market shares.
26: Networks' debit card data numbers.
27: Networks' debit card billed volume.
28: Networks' number of debit card transactions.
29: Networks' average debit card transaction value.
30: Debit card interchange fees by network.
31: Key credit card issuers' market shares by credit card numbers: 2018-23F.
32: Key issuer's market shares in credit card outstandings: 2018-23F.
33: Key debit card issuers' market shares by debit card numbers: 2018-23F.
34: Merchant acquirer credit card market share: 2022E.
35: Credit card merchant service charges: 2016-25F.
36: Merchant acquirer debit card market share: 2022E.
37: Debit card merchant service charges: 2016-25F.
38: Credit card issuer/issuing processor relationships: -
39: Credit card acquirer/acquiring processor relationships: -
40: Credit card issuing processor market shares by card numbers: 2022E.
41: Credit card acquiring processor market shares by the number of POS transactions: 2022E.
42: Online merchant acquirer market share: 2022E.

India Country Report | Selected Extracts

Demographics and Economy
India was amongst the countries hardest hit by the pandemic and ensuing health-related restrictions. Real GDP growth ... declined by 6.6 per cent during the Covid- afflicted 2020.

Payments Environment
India is home to one of the world's most vibrant and fast-moving payments markets. A massive population, coupled with a governmental determination to reduce cash use, has created a fascinating arms race.

Cards market
While the traditional cards market still has potential, it also faces serious competition and will need to develop innovative models to integrate back into the rapidly evolving payments ecosystem that has been emerging here.

Mobile Payments
The surge in the number of mobile phone and internet users in India indicates that the digital payments market, though already vast, retains huge further potential.

Profit Pool
Credit card numbers here have been on the rise, growing from around 23 million cards in 2015 to almost 69 million in 2021. AAR forecasts that credit card numbers could swell to a little over 100 million by 2025.

Card Networks
There are two primary networks in India, with a combined estimated market share of 94 per cent of credit cards in issue by the end of 2022. American Express, Diners Club and RuPay account for the remaining six per cent share.

Key Retail Banks and Issuers
Great structural shifts in the banking and finance sector caused by the evolving interconnectivity between traditional banks and non-banks are currently underway.

Acquiring and Processing
While many may think that a move to QR code could stifle the potential of mPOS development, it seems that a more multifaceted approach will occur in the payments space. In India, banks either conduct their card processing activities in-house or outsource them to payment service providers.

Online Acquiring
It is widely expected that online acquiring will become a hub of collaborations and partnerships as advancements in technology and payment products should prove difficult for retail banks to keep up with independently.

Regulatory and Markets Information
The Reserve Bank of India (RBI) is the country's central bank. Its Payment and Settlement Systems Vision 2019- 21 emphasises the need for enhanced user experience, an improved regulatory environment and empowered payment players.

India Payments Report | Entities Referenced

Accenture
Air India
AirAsia
Airpay
Airtel Payments Bank
Allahabad Bank
Amazon
Amazon Pay
Amazon Web Services
American Express
Andhra Bank
AnyPay
Apollo
Atos Origin
Avail Finance
Axis Bank
BabyOye
Bank of Baroda
Bank of India
BharatPe
BillDesk
BOB Financial Solutions
BookMyShow
BPCL
Canara Bank
Cashfree Payments
CCAvenue
Central Bank of India
Chennai Super Kings
Citibank
Citrus Pay
Dailyhunt
Diners Club
Discover
EBS
Emvantage
ePaisa
Etihad
Ezetap Mobile Solutions
Facebook
Federal Bank
Fino Payments Bank
FirstCry
FIS
Fiserv
Flipkart
Freecharge
FSS
GE Capital
Glance
Google
Google Pay
HDFC
Hitachi Payment Services
HSBC
ICICI Bank
ICICI Merchant Services
IDBI Bank
India Post Payment Bank
Indian Bank
Indian Oil
Indian Overseas Bank
IndusInd Bank
Ingenico
Instamojo
IRCTC
Jabong
JCB
Jet Airways
Jio Payments Bank
Jio Platforms
Juno Payments
Juspay
Karnataka Bank
Kotak Mahindra Bank
Life Insurance Corporation of India
MakeMyTrip
Manchester United
Mashreq Bank
Mastercard
MobiKwik
Naspers
NeoPay
NPCI
NSDL Payments Bank
Ola
Ola Money
One97 Communications
Online Prasad
Oriental Bank of Commerce
Paytm
Paytm Payments Bank
PayU
PayZippy
PhonePe
Pine Labs
PPRO
Punjab National Bank
Razorpay
RBL Bank
RBS
Reserve Bank of India
Royal Bank of Scotland
RuPay
Saraswat Bank
SBI Card
Shoppers Stop
Snapdeal
South Indian Bank
Standard Chartered
Tata
TechProcess Payment Services
Tencent
TikTok
Transecute
Uber
Union Bank
UnionPay
UrbanClap
Venture Infotek
Visa
Walmart
WeChat Pay
WhatsApp
WhatsApp Pay
Wimbo
Worldline
Yatra
Yes Bank
ZaakPay
ZestMoney
Zomato

MORE ASIA-PACIFIC CARDS & PAYMENTS REPORTS

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

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