Credit Cards and EMIs Power One-Third of India’s Digital Payments

A new report shows that in 2024, about one out of every three digital payments in India was made using credit cards or through EMI (Equated Monthly Installments). The survey looked at data from over 20,000 shops and businesses, showing that more and more people are choosing to pay later instead of paying everything at once.

This trend comes at a time when the government and RBI are putting in stricter rules to control how much people borrow and to reduce the increasing household debt.

Why Are People Using Credit More?

The report says that people are using credit for big purchases, especially in areas like:

• Education – paying school or college fees
• Healthcare – for medical treatments
• Auto parts – buying vehicle-related products

Also, festivals, school admission seasons, and special sales see a big jump in credit payments. People are using credit cards or EMI plans during these times to manage their money better.

UPI Rules Small Payments, Credit Takes Big Ones

UPI (Unified Payments Interface) still leads the way and makes up 65% of all digital transactions. Most people use it for daily expenses like food, shopping, bills, and even government services. It’s fast and easy.

But for larger purchases, more people are using credit cards or EMI options. This shows a change in how people think—they are okay with paying in parts rather than all at once.

What the Experts Say

“Digital payments are helping people plan better and dream bigger. UPI and credit options give people more choice, but they should use them wisely to grow financially.”

– Rajesh Londhe, Co-founder of Phi Commerce

A Change in Mindset

People are now managing their cash flow, not just spending what they can afford right away. They’re using tools like EMIs to spread out payments and make life easier—especially when spending on things that matter like health, education, or a car.

But this also means people need to be careful with debt. Spending smart and paying back on time is very important.

Key Points

• 33% of digital payments in India in 2024 were made using credit cards or EMIs.
• UPI is still the most used method, with 65% share.
• Big-ticket purchases like education, healthcare, and auto-related items are often done on credit.
• People prefer EMIs during festive seasons or high-spending times.
• There’s a clear shift from full payment to paying in parts for better cash control.

Final Thought

India's digital payments landscape is changing fast. While UPI continues to dominate daily transactions, the rise in credit card and EMI use shows a shift in how people manage their money. With more flexible options available, it’s now easier to make big purchases without breaking the bank. But as always, using credit wisely is key—spend smart, stay informed, and build a strong financial future.