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Credit cards have solidified their dominance in high-value consumer spending in India, while Unified Payments Interface (UPI) has emerged as the go-to method for everyday transactions, according to a recent report by Worldline. The findings reveal a significant shift in payment behaviors, with consumers increasingly opting for credit cards, UPI, and prepaid instruments. In contrast, the use of debit cards has seen a notable decline. The report, which covers the third quarter of 2025, highlights these trends through various statistics that underscore the evolving landscape of digital payments in the country.
Credit Card Transactions Surge
The report indicates a remarkable 26 percent increase in credit card transactions, which reached 1.45 billion during the third quarter of 2025. The total transaction value soared to Rs 6.07 trillion, showcasing the pivotal role of credit cards in facilitating high-value purchases and equated monthly installment (EMI) transactions. This growth can be attributed to the attractive rewards programs and flexible payment options that credit cards offer, making them a preferred choice for consumers. As a result, the number of credit cards in circulation rose by 8 percent year-on-year, totaling 113.39 million. This surge reflects a strong consumer inclination towards reward-based offerings and EMI features, further solidifying credit cards’ position in the market.
Decline in Debit Card Usage
In stark contrast to the growth of credit cards, debit card usage has experienced a significant downturn. The report reveals that debit card transactions fell to 0.33 billion, marking a 22 percent decrease, while the transaction value dropped by 13 percent to Rs 1.12 trillion. This decline is largely attributed to consumers shifting their routine spending to UPI, which has become increasingly popular for everyday transactions. The modest growth of debit cards, which increased by only 5 percent year-on-year to 1,024.82 million, indicates that their role in daily payments is being supplanted by UPI’s convenience and efficiency.
UPI’s Rapid Growth
The report highlights the explosive growth of UPI, with transactions surging by 34 percent year-on-year. This growth has been facilitated by the widespread adoption of QR codes across the country, with 709 million active QR codes now in circulation. UPI has become the preferred method for small-value transactions and daily essentials, as scan-and-pay options gain traction among consumers. The average transaction size for UPI remains competitive, reflecting its effectiveness in catering to the needs of everyday spenders.
Trends in Prepaid Card Usage
Prepaid cards have shown mixed trends in the report. While transaction volumes increased by 23 percent, the total transaction value saw a decline of 7 percent. This suggests that prepaid cards are increasingly being used for recurring and small-ticket transactions rather than larger purchases. The number of prepaid cards in circulation expanded by 24 percent year-on-year, reaching 470.1 million. This growth is supported by corporate usage, transit solutions, and various wallet-driven applications, indicating a diversification in the use cases for prepaid cards in the digital payments ecosystem.
Overall, the Worldline report paints a clear picture of the shifting dynamics in India’s digital payments landscape, with credit cards gaining traction in high-value spending, UPI solidifying its status as the preferred method for everyday transactions, and prepaid cards carving out a niche for specific use cases.
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