India’s Digital Payments Expected to Triple by FY30, Credit Cards to Drive Next Growth Phase: PwC

India’s digital payments ecosystem is poised for another growth phase, with transaction volumes projected to nearly triple by FY30, according to PwC India’s report, “The Indian Payments Handbook: 2025–30.” 

While UPI continues to dominate the retail digital payments landscape, the next wave of expansion is expected to be led by credit cards and supported by the Bharat Bill Payment System (BBPS).

Credit Cards to Lead the Next Phase

The report surveyed over 175 senior fintech and payments leaders, with 65% identifying credit cards as the top segment for growth. Currently, India has over 100 million credit cards in circulation, and this number is projected to double to 200 million by FY30. 

Wider acceptance and product innovation are expected to support this growth. In contrast, debit card usage is on a decline as consumers increasingly prefer UPI and credit-based payments for convenience and flexibility.

AI and Innovation to Transform the Sector

Artificial intelligence is emerging as a key driver of change. About 73% of respondents expect Generative AI and Agentic AI to impact areas such as customer acquisition, operational efficiency, and biometric authentication. 

Nearly half of the participants believe AI will enhance user experience through hyper-personalisation and seamless verification, reshaping the way consumers interact with digital payment platforms.

Cross-Border Payments and Regulation

Cross-border UPI enablement emerged as a priority for 33% of respondents, indicating a growing demand for international payment interoperability. Regulatory support for digital-only banks and potential merchant discount rates (MDR) on UPI and RuPay debit transactions are also seen as important measures to build sustainable monetisation models in the sector.

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Conclusion

Respondents highlighted two critical factors for the future of digital payments: innovation in user experience and cybersecurity, both noted by 32% of participants. Additionally, 26% emphasised the importance of financial inclusion in underserved markets, ensuring that the growth of digital payments benefits a wider segment of the population.

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