New Delhi: India’s payment card transaction value—including POS payments and ATM cash withdrawals—is projected to reach Rs 59.2 lakh crore in 2025, according to the latest GlobalData report. The growth is attributed to higher consumer spending, a preference for electronic payments, and the government’s GST 2.0 reforms that reduced tax rates on essentials, automobiles, electronics, and healthcare from September 22, 2025.
The report highlights that India’s card payment value (POS and remote payments) rose 7.8% in 2024 to Rs 27.5 lakh crore, and is forecast to grow 9.4% in 2025 to Rs 30.1 lakh crore. In contrast, ATM withdrawals are projected to decline 4.9% as cash usage wanes. By 2025, card payments will account for 50.8% of the total transaction value—slightly ahead of ATM withdrawals.
Industry experts point to RBI measures—such as reducing merchant service fees and expanding payment infrastructure—as catalysts for card adoption. Additionally, banks’ aggressive marketing campaigns, cashback offers, and instalment facilities are further boosting credit card usage.
Yet, challenges remain. Despite the rise, card penetration is limited, with frequency at just 6.9 transactions per card in 2025. UPI’s dominance—thanks to cost-free, real-time transactions—continues to overshadow card payments, particularly in rural areas.
GlobalData analyst Yasaswini Pujitha notes that while UPI remains the most preferred method, card payments will record steady growth over the next five years, driven by digitalisation, consumer confidence, and evolving payment acceptance infrastructure.
