UPI and personal loans erode credit-card dominance in Indian wallets: CIBIL
A CIBIL whitepaper shows credit cards ceding ground as UPI and personal loans reshape how Indians pay and finance consumption. Card penetration sits at just 25% of credit-active users, first-time issuance fell to 8% from 26% a year ago, and card share of consumption loans slid to 38% from 56%.
CIBIL whitepaper shows credit cards losing ground to UPI and personal loans in India's consumer wallet, with only 25% credit-card penetration and falling first-time issuance—reshaping payment rails and consumption financing for Indian retail.
Why this matters
UPI's expansion continues on multiple fronts: cross-border rails with Indonesia, 611M biometric payments in June 2026, and merchant-account protections. Now CIBIL data shows UPI displacing credit cards in consumption financing.
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