Credit Card: The Resistance, Acceptance, and Growth In India


India, a country known for its diverse culture, rich history, and rapidly evolving economy, has witnessed a remarkable transformation in the realm of finance, notably in the adoption and usage of credit cards. This evolution mirrors not only changing consumer preferences but also significant credit card growth, showcasing a growing recognition of the benefits associated with credit cards.

In this blog post, we will explore the journey of credit cards in India, from initial resistance to widespread acceptance and subsequent growth. We’ll delve into the reasons behind this shift and shed light on the current state of credit card usage in the country.

1. The Initial Resistance

Historically, India had a cash-centric economy, and a significant portion of the population was skeptical about using credit cards. This skepticism stemmed from various factors, including:

A. Cultural Beliefs

In Indian culture, the idea of living within one’s means and avoiding debt was deeply ingrained. Many people viewed credit cards as a pathway to financial indiscipline and potential debt traps.

B. Lack of Awareness

The understanding of how credit cards worked and their potential benefits was limited. Many individuals were unaware of the advantages such as cashback, reward points, and convenient transactions.

C. Security Concerns

Security apprehensions regarding credit card transactions, especially online, were prevalent. Data breaches and credit card fraud reported in various parts of the world heightened fears among potential users.

Read Also: Pros and Cons of Increasing Your Credit Card Limit

2. The Turning Point: Acceptance

Despite the initial resistance, credit cards gradually gained acceptance in India, largely due to several factors:

a. Economic Growth

India’s booming economy and the rise of the middle class increased disposable incomes and purchasing power. As people’s financial capacities improved, the need for convenient payment options became apparent.

b. Digitalization

The Government of India’s push for a digital economy and initiatives like Digital India significantly influenced the adoption of online payment methods, including credit cards.

c. Promotional Offers

Banks and financial institutions began offering attractive promotional deals, discounts, and reward programs to incentivize credit card usage. These offers played a pivotal role in encouraging people to opt for credit cards.

Read Also: Things That Are Ruining Your Credit Score

3. The Growth Trajectory

In recent years, the growth of credit card usage in India has been exponential. Several factors have contributed to this growth:

a. Tech-Savvy Millennials

The younger demographic, being more tech-savvy and open to financial innovations, has embraced credit cards for their convenience and benefits.

b. E-commerce Boom

The rapid growth of e-commerce platforms and the preference for online shopping have significantly boosted credit card usage for online transactions.

c. Improved Financial Literacy

Efforts to enhance financial literacy have resulted in a better understanding of credit cards and their responsible usage.

Read Also: What are Credit Card Interchange Rates?

4. Current State of Credit Card Usage

Today, credit cards have become an integral part of financial portfolios for a vast segment of the Indian population. Benefits such as cashback, reward points, travel privileges, and security features have made credit cards a preferred mode of payment.

Financial institutions continue to introduce innovative credit card products tailored to specific consumer needs, further fueling the growth trajectory. The emphasis on a seamless digital experience and contactless payments has also played a vital role in making credit cards more appealing to consumers.

Best Credit Cards In India

Axis Bank Magnus Credit Card

The Magnus credit card by Axis Bank is a super-premium offering that outshines most credit cards available in the market. It boasts an array of fantastic features, including incredible rewards programs, discounts on movies and dining, and flexible rewards redemption options – all at highly competitive rates. Along with these benefits, cardholders enjoy complimentary lounge access and concierge services. Moreover, this card offers discounted stays at Oberoi Hotels. Not to mention, it comes with a low-interest rate of 2.5% per month, a foreign currency markup of 2%, and no cash withdrawal fees, making it a comprehensive credit card package.

HDFC Bank INFINIA Credit Card Metal Edition

INFINIA stands as HDFC Bank’s premium credit card, setting exceptionally high standards. Tailored for travel and dining enthusiasts, this card commands a joining fee of Rs. 12,500 + GST. It offers excellent value, rewarding cardholders with 5 reward points for every Rs. 150 spent on retail transactions. Additional perks encompass movie and dining benefits, travel privileges, golf benefits, airport lounge access, insurance coverage, and more.

SBI ELITE Credit Card

The SBI ELITE Credit Card is a premium offering from SBI Bank, requiring a joining fee of Rs. 4,999 + GST. Ideal for movie buffs, travelers, and shoppers, this card offers an array of benefits. From attractive welcome perks to discounted dining and international lounge access, it guarantees the best deals in the market. Cardholders earn 2 reward points for every Rs. 100 spent, excluding fuel purchases, although a fuel surcharge waiver is granted. Other added benefits from the bank are also available, enhancing the overall cardholder experience.

ICICI Bank Sapphiro Credit Card

Sapphiro, a premium credit card by ICICI Bank, comes with a joining fee of Rs. 6,500 + GST and a renewal fee of Rs. 3,500 + GST. Versatile and partnered with various brands such as Tata CLiQ, EaseMyTrip, Uber, Zomato Pro, and Croma, it provides enticing welcome gift vouchers. Cardholders earn 4 reward points for every Rs. 100 spent on international purchases and 2 points for domestic transactions. With remarkable benefits in travel, movies, dining, golf, lounge access, and more, the ICICI Bank Sapphiro Credit Card is truly exceptional.

ICICI Coral Visa Credit Card 

If you are new to credit cards and looking for a low-maintenance credit card, then ICICI Coral Visa credit card is a good option for you. As this card has a very low annual fee of rs 500. The card offers various rewards at, Airports, movies, and many more public places.


In conclusion, India’s journey with credit cards showcases a remarkable shift in mindset and adoption patterns. From initial resistance rooted in cultural beliefs and security concerns to widespread acceptance and significant growth, credit cards have emerged as a key player in the country’s evolving financial landscape. With an increasing emphasis on financial literacy and ongoing technological advancements, the future of credit card usage in India appears promising and poised for continued growth.

Leave a Comment