India card payments set to rise on banking expansion and UPI integration

The PMJDY and JAM initiatives are expanding access to formal banking, said GlobalData.

India’s payment card usage is set to rise thanks to the growth of the banked population, an improving payments infrastructure, and increasing preference for electronic payments, according to GlobalData.

Indian consumers are reportedly gradually leaning toward credit cards, driven by value-added propositions such as reward points, discounts, and installment payment facilities, the data and analytics company said in a report on 4 September 2026

The expansion of the middle-class workforce, rising incomes, and greater awareness are supporting increased credit card uptake and usage, GlobalData said.

“Looking ahead, India’s card payments growth will be shaped by the ongoing expansion of financial inclusion, continued digital infrastructure investment, and product innovation across physical and virtual cards,” said Ravi Sharma, lead banking and payments analyst at GlobalData.

Initiatives such as Pradhan Mantri Jan-Dhan Yojana (PMJDY) and the JAM Yojana framework are expanding access to formal banking, Sharma said.

PMJDY is India’s India’s financial inclusion initiative that includes zero minimum balances in bank accounts, issuance of a RuPay debit card, as well as accidental insurance and overdraft facilities.

As of August 2026, over 590 million accounts and over 410 million RuPay cards have been issued under PMJDY, according to GlobalData.

The JAM Yojana framework, meanwhile, is made up of three pillars that promotes opening zero-balance bank accounts for low-income and unbanked citizens, assigning a unique biometric digital identity, and expanding mobile phone access.

The integration of credit cards with UPI is expected to increase utilization by enabling instant payments via widely used UPI QR codes, including at merchants that do not accept card payments through traditional POS infrastructure, said GlobalData.

“While digital wallets—powered by UPI—have often leapfrogged cards for everyday payments, initiatives such as UPI-linked credit card acceptance and broader card issuance are likely to increase card relevance in specific use cases, particularly ecommerce and higher-value spending,” Sharma said.

A supportive macro environment, alongside policy efforts to balance growth with responsible credit, will remain important for sustained market momentum, Sharma added.