Banks in India are increasingly issuing multiple credit cards to existing customers rather than onboarding new borrowers, a shift that has resulted in just 5.2 crore unique cardholders against 10.7 crore cards in circulation as of March 2026, according to the report 'Beyond the Swipe' by TransUnion Cibil.
Market Shift from Ownership to Usage
The report highlights a fundamental shift over the past decade from expanding credit card ownership to deepening usage within the existing consumer base. Data from March 2016 to March 2026 shows that growth in the number of individual credit cardholders has lagged behind the rise in total live cards, indicating that expansion is being driven by issuing multiple cards to existing users.
"Around 25% of new-to-credit-card (NTCC) consumers already had three or more open credit products, suggesting that for many consumers, the first credit card is being added to an existing credit wallet, and not necessarily an entry product. Compared to the UK at 70%, Colombia at 62% and Hong Kong at 98%, India's credit card penetration at 25% of credit-active consumers, as of March 2026, is lower than several mature and emerging credit markets," said Bhavesh Jain, MD & CEO, TransUnion Cibil.
Demographic Profile of New Cardholders
Interestingly, 50% of new-to-credit card consumers were Gen Z (aged 30 years or below) as of March 2026, and 46% of NTCC resided within semi-urban and rural markets, reflecting early adoption and deeper geographic expansion of credit cards.
Comparative Metrics: 2016 vs 2026
The divergence between card issuance and customer growth over the decade is evident in the following metrics:
| Metric | March 2016 | March 2026 | Growth (times) |
|---|---|---|---|
| Active credit cards | 2.1 crore | 10.7 crore | 5.1x |
| Unique cardholders | 1.4 crore | 5.2 crore | 3.6x |
| Consumers with 3+ cards | 12% | 22% | – |
The gap indicates that the market's expansion has relied on adding more cards to the wallets of existing users. This trend reflects a broader behavioural shift towards multi-carding and diversified credit usage.
Implications for Banking Strategy
For finance executives and treasury professionals, the data signals that banks are prioritising revenue from existing customer relationships over new customer acquisition. The focus on deepening usage within the base may enhance profitability through higher spend per cardholder, but it also raises questions about long-term market penetration. With India's credit card penetration at only 25% of credit-active consumers, there remains significant room for growth, particularly among younger and rural demographics who are already showing early adoption.
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