RuPay credit cards gain 18% market share in India
Domestic card network RuPay has sharply increased its presence in India’s credit card market, reaching around 18 percent share in October, helped largely by its deep integration with the Unified Payments Interface (UPI). Industry data show that more and more credit card users are routing their everyday payments through RuPay credit cards linked to UPI, using simple QR-based transactions at shops and online.
A significant portion of RuPay credit card spends now happens via UPI rather than traditional point-of-sale (POS) machines. Estimates suggest that out of the total monthly spending on RuPay credit cards, a large chunk comes from UPI transactions, highlighting how scan-and-pay behaviour is shaping card usage patterns. Unlike earlier, when credit cards were largely swiped at physical terminals, RuPay cards are now being used for small ticket, high-frequency digital payments.
The average transaction value on RuPay credit cards is lower than that of global rivals like Visa and Mastercard. This indicates that RuPay is becoming the preferred option for daily expenses such as groceries, fuel, small retail purchases and online payments, rather than only for big-ticket spends like electronics or travel. In effect, RuPay is embedding itself into routine household spending.
Banks and fintech companies have also played a key role in this shift. Several lenders have launched RuPay credit cards aimed at first-time borrowers and young users, including products backed by fixed deposits or low documentation. Because these cards can be instantly linked to UPI apps, customers find it easier to start using credit in a controlled and familiar way, directly from their existing payment apps.
For the broader market, RuPay’s rise means that the dominance of international networks is facing real competition from an Indian alternative. Visa and Mastercard still hold a larger overall share, especially in premium and international segments, but RuPay’s growth in domestic, everyday spending is changing the structure of the market. For merchants, the ability to accept RuPay credit via the same QR they already use for UPI adds convenience without extra hardware.
Going ahead, analysts expect RuPay’s share to grow further as more banks push UPI-linked credit cards, and as smaller towns and semi-urban markets adopt digital credit for day-to-day transactions. However, building a stronger presence in the premium customer segment and expanding international acceptance remain key challenges for RuPay if it wants to close the gap with global competitors.
