India’s digital payments to triple by FY30; credit cards to lead next wave: PwC

India’s digital payments are set for another growth spurt, with transaction volumes projected to nearly triple by FY30, according to PwC India’s latest report, “The Indian Payments Handbook: 2025–30."

While UPI remains the dominant payments channel, accounting for nearly 90% of retail digital transactions in FY2024–25, the next leg of expansion will be led by credit cards, followed by the Bharat Bill Payment System (BBPS).

A survey of over 175 senior fintech and payments leaders found that 65% identified credit cards as the top growth segment, with more than 90% expressing confidence in the segment’s long-term potential. India currently has over 100 million credit cards in circulation, a number projected to double to 200 million by FY30, supported by product innovation and wider acceptance.

In contrast, debit card usage continues to decline as consumers increasingly prefer UPI and credit-based payments.

The report also highlights AI as a major disruptor in the sector, with 73% of respondents expecting Gen AI and Agentic AI to reshape areas like customer acquisition, operations, and biometric authentication.

Also Read: KPMG report pegs 31% CAGR for India’s fintech sector from 2025 to 2029



Nearly half believe these technologies will redefine user experience through hyper-personalisation and seamless verification.

On the regulatory side, cross-border UPI enablement topped the priority list for 33% of respondents, signalling demand for greater international interoperability. Respondents also cited support for digital-only banks and a possible merchant discount rate (MDR) on UPI and RuPay debit transactions as necessary for building sustainable monetisation models.

The top two factors seen as critical for the sector’s future are user experience innovation and cybersecurity (32% each), while 26% of respondents emphasised the continued importance of financial inclusion in underserved markets.

PwC’s Mihir Gandhi, Partner and Leader – Payments Transformation and Fintech, said India’s payments ecosystem is entering “a new phase of maturity,” where the focus will be on balancing scale and innovation with security and inclusion.