Credit Card Trends in India (2026): What's Growing, What's Shrinking

The state of the Indian credit-card market in 2026

India's credit-card market has reached ~110 million active cards (RBI's December 2025 data) and ~₹22 lakh crore in annual spend. The market is mature in metro cities (where penetration approaches 30%–40% of adults) and growing rapidly in tier-2 and tier-3 cities.

The 2026 trends:

• Premium cards are growing at 25%+ per year (Infinia, DCB, Atlas, Emeralde, Amex Platinum).
• Cashback cards are growing at 15% per year (Amazon Pay ICICI, Flipkart Axis, SBI Cashback).
• Co-brand cards are consolidating (Vistara merger, SpiceJet closed).
• Entry-level cards are flat (RBL, IndusInd, Kotak gaining ground).
• Fintech BNPL is slowing as RBI tightens regulation.

The premium card growth

Premium cards (annual fee ₹5,000+) grew 25% in CY 2025. The drivers:

• Wealth creation: India's HNI population grew 12% per year; premium cards are a status symbol.
• Travel rebound: International travel is back to pre-COVID levels; 0% forex cards are in demand.
• Lounge access: Airports are crowded; lounge access is a real perk.
• Transfer partners: Amex MR and HDFC's Maharaja Club transfer are widely advertised.

The premium card growth is concentrated in HDFC (Infinia, DCB), Axis (Atlas), and Amex (Platinum Travel).

The cashback card growth

Cashback cards grew 15% in CY 2025. The drivers:

• Amazon and Flipkart dominance: online shopping growth drives co-brand card adoption.
• Lifetime-free positioning: zero-fee cards are easier to acquire than paid cards.
• First-time cardholders: entry-level cashback cards are the right first card.

The cashback card growth is concentrated in ICICI (Amazon Pay ICICI), Axis (Flipkart Axis), and SBI (Cashback).

The co-brand consolidation

The Vistara merger into Air India consolidated the points programmes. The SpiceJet card was closed to new applicants. The remaining co-brand cards:

• Air India / Vistara co-brand: HDFC, IDFC First (still active).
• MakeMyTrip co-brand: ICICI.
• Tata Neu co-brand: HDFC (Tata Neu HDFC).
• SpiceJet co-brand: legacy cardholders only.

Co-brand cards are a smaller share of total issuance than 5 years ago. The transfer-partner cards (HDFC, Axis, Amex) are the winners.

The entry-level market

Entry-level cards (annual fee below ₹500) are flat in tier-1 cities (saturated) but growing in tier-2 and tier-3 cities. The drivers:

• First-time cardholders: smaller cities have lower credit-card penetration.
• Salary-account banks: HDFC, SBI, ICICI have aggressive entry-level products.
• Digital onboarding: apps make it easier to apply.

The entry-level growth is concentrated in HDFC (MoneyBack), SBI (SimplyCLICK, Cashback), and ICICI (Coral).

The fintech BNPL slowdown

Fintech BNPL apps (LazyPay, Simpl, ZestMoney) slowed in 2025 after the RBI's crackdown on unsecured lending. The RBI's tightening affected:

• Approval criteria: BNPL apps now require income proof and credit-score checks.
• Loan limits: lower limits (₹10,000–₹50,000) vs ₹1 lakh+ before.
• Reporting to bureaus: more consistent reporting to CIBIL.

The slowdown is healthy for the market; it reduces BNPL abuse and protects consumers.

The premium cardholder profile

The 2025 data on premium-card holders:

• Average age: 35–45.
• Average income: ₹15–₹50 lakh per year.
• Average annual card spend: ₹5–₹25 lakh.
• Most common cards: HDFC Diners Club Black, HDFC Infinia, Axis Atlas, Amex Platinum Travel, ICICI Emeralde.
• Most valued benefits: 0% forex, lounge access, transfer partners, concierge.

The premium cardholder is typically a working professional or business owner with international travel needs.

The cashback cardholder profile

The 2025 data on cashback cardholders:

• Average age: 25–40.
• Average income: ₹5–₹15 lakh per year.
• Average annual card spend: ₹1–₹5 lakh.
• Most common cards: Amazon Pay ICICI, Flipkart Axis, SBI Cashback, HDFC Millennia.
• Most valued benefits: cashback, no annual fee.

The cashback cardholder is typically a salaried employee with online-shopping habits.

The data behind the shifts

Premium cards

• Active premium cards (annual fee ₹5,000+): ~5 million in 2025, up from ~3.5 million in 2023.
• Average premium-card spend: ₹8 lakh per year.
• Total premium-card spend: ~₹4 lakh crore per year.

Cashback cards

• Active lifetime-free cashback cards: ~50 million in 2025, up from ~30 million in 2023.
• Average cashback-card spend: ₹1.5 lakh per year.
• Total cashback-card spend: ~₹7.5 lakh crore per year.

Co-brand cards

• Active co-brand cards: ~10 million in 2025, flat from 2023.
• Most popular co-brand: HDFC Tata Neu, Amazon Pay ICICI (technically a co-brand with Amazon).

The premium and cashback segments are growing; the co-brand segment is flat.

The implications

For consumers

• More options: the cashback segment's growth means more zero-fee options.
• Stronger rewards: competition has pushed rewards up.
• Tighter consumer protection: RBI's regulatory pressure benefits consumers.

For banks

• Margin pressure: interchange has dropped; rewards have risen; margins are compressed.
• Cross-sell opportunity: banks make more money on personal loans than on credit cards.
• Premium card focus: HDFC's premium card growth is profitable; cashback card growth is break-even.

For the market

• Premium segment: HDFC Infinia and Diners Club Black are the clear leaders.
• Cashback segment: ICICI Amazon Pay ICICI, Flipkart Axis, SBI Cashback are the top picks.
• Travel segment: Axis Atlas, Amex Platinum Travel, HDFC DCB.
• Co-brand segment: declining but still relevant for specific merchants.

What to watch in 2026

• Finance-charge cap: the RBI's review may cap finance charges at 30%–36% per annum.
• Reward standardisation: the RBI may require standardised reward disclosure.
• Premium card growth: HDFC and Axis are likely to continue growing 20%+ per year.
• Cashback card growth: ICICI and SBI are likely to continue growing 15% per year.
• Co-brand cards: Tata Neu and MakeMyTrip co-brands are likely to be the survivors.

The bottom line

India's credit-card market is bifurcating: premium cards for high-spenders, cashback cards for everyone else. The premium segment is growing 25% per year; the cashback segment is growing 15% per year. The co-brand segment is consolidating around Tata and MakeMyTrip. The fintech BNPL segment is slowing as RBI tightens regulation. The right pick depends on your spend pattern and your values. The market is competitive; the rewards are real. The discipline: pick the card that maximises your return, and switch when the math changes.