State-wise Credit Card Adoption Trends in India

In 2025, the practice of swiping or tapping a credit card for purchases is on the rise in India; however, not everyone utilizes this payment method.

Merely 4.6% of the population, which equates to approximately 67 million individuals, possess credit cards.

The first table enumerates the percentage of individuals utilizing credit cards, while the second delineates the number of users in millions.

Certain states have adopted card usage, whereas others continue to rely on cash or UPI.

State-wise Credit Card usage in India (% of Population)

Rank	State/Union Territory	Credit Card Usage (% of Population)
1	Delhi	12.0*
2	Chandigarh	11.0*
3	Goa	10.0*
4	Maharashtra	9.5
5	Karnataka	8.5
6	Telangana	8.0
7	Tamil Nadu	7.5
8	Haryana	7.0*
9	Gujarat	6.5*
10	Punjab	6.0*
11	Kerala	5.5*
12	Andhra Pradesh	5.0*
13	India (National Average)	4.6
14	Uttar Pradesh	4.0*
15	West Bengal	3.5*
16	Rajasthan	3.0*
17	Madhya Pradesh	2.5*
18	Odisha	2.0*
19	Bihar	1.5*
20	Jharkhand	1.0*
21	Chhattisgarh	1.0*
22	Assam	0.8*
23	Uttarakhand	0.7*
24	Himachal Pradesh	0.6*
25	Jammu and Kashmir	0.5*
26	Tripura	0.4*
27	Manipur	0.3*
28	Meghalaya	0.3*
29	Nagaland	0.2*
30	Arunachal Pradesh	0.2*
31	Mizoram	0.2*
32	Sikkim	0.1*
33	Puducherry	0.1*
34	Andaman and Nicobar Islands	0.05*
35	DNHDD (Dadra and Nagar Haveli and Daman and Diu)	0.05*
36	Ladakh	0.05*
37	Lakshadweep	0.01*

This table organizes the states according to the percentage of individuals using credit cards. Delhi occupies the leading position with 12.0%, succeeded by Chandigarh (11.0%), Goa (10.0%), Maharashtra (9.5%), and Karnataka (8.5%).

The national average stands at 4.6%, while Lakshadweep (0.01%), Ladakh (0.05%), and Dadra and Nagar Haveli and Daman and Diu (0.05%) are at the bottom of the list.

Delhi’s premier ranking is attributed to its urban environment, where affluent individuals in offices and shopping malls frequently use cards for substantial purchases.

Chandigarh’s 11.0% reflects its prosperous, city-dwelling populace with access to banking facilities. Goa’s 10.0% is linked to both tourists and locals utilizing cards at resorts.

Maharashtra and Karnataka, home to cities like Mumbai and Bengaluru, achieve 9.5% and 8.5% respectively, as tech professionals and consumers are drawn to card rewards.

What accounts for the lag in some states?

Lakshadweep’s 0.01% is a result of its small population and dependence on cash for its fishing-based economy.

Ladakh’s 0.05% is hindered by poor internet connectivity and a scarcity of shops that accept cards.

Bihar’s 1.5% reflects low income levels and a rural lifestyle, where individuals tend to favor UPI or cash.

Total number of Credit Card users in India

Rank	State/Union Territory	Credit Card Users (Million People)
1	Uttar Pradesh	9.66*
2	Maharashtra	9.61*
3	Bihar	6.75*
4	West Bengal	6.43*
5	Madhya Pradesh	4.36*
6	Rajasthan	4.08*
7	Tamil Nadu	3.45*
8	Karnataka	3.02*
9	Gujarat	2.85*
10	Andhra Pradesh	2.09*
11	Telangana	1.66*
12	Kerala	1.20*
13	Odisha	0.83*
14	Punjab	0.77*
15	Haryana	0.97*
16	Chhattisgarh	0.70*
17	Jharkhand	0.67*
18	Assam	0.61*
19	Uttarakhand	0.30*
20	Jammu and Kashmir	0.28*
21	Himachal Pradesh	0.18*
22	Delhi	1.45*
23	Goa	0.15*
24	Tripura	0.11*
25	Manipur	0.09*
26	Meghalaya	0.07*
27	Nagaland	0.04*
28	Arunachal Pradesh	0.04*
29	Mizoram	0.03*
30	Sikkim	0.01*
31	Puducherry	0.04*
32	Chandigarh	0.04*
33	Andaman and Nicobar Islands	0.01*
34	DNHDD (Dadra and Nagar Haveli and Daman and Diu)	0.02*
35	Ladakh	0.01*
36	Lakshadweep	0.001*

This table illustrates the number of credit card users in millions. Uttar Pradesh leads with 9.66 million users, followed closely by Maharashtra with 9.61 million, Bihar with 6.75 million, West Bengal with 6.43 million, and Madhya Pradesh with 4.36 million.

Smaller regions such as Lakshadweep (0.001 million), Ladakh (0.01 million), and the Andaman and Nicobar Islands (0.01 million) have the least number of users.

Uttar Pradesh’s 9.66 million users are attributed to its large population of 241.5 million, despite a relatively low usage rate of 4.0%.

Maharashtra’s 9.61 million users are indicative of the bustling markets in Mumbai, where 6.58 billion UPI transactions further enhance card usage (NPCI, 2025).

Bihar, with 6.75 million users, demonstrates that its significant population of 125 million contributes to its credit card adoption, even with a low rate of 1.5%.

The small territories exhibit minimal user numbers due to their limited populations.

Lakshadweep’s 0.001 million users correspond to its 64,000 residents, who seldom require credit cards.

Ladakh’s 0.01 million users reflect its remote economy, which is primarily cash-based and reliant on tourism.

Reasons for the Disparities in Credit Card Usage

Several elements account for the inconsistent credit card utilization across India:

Urbanization: The 12.0% rate in Delhi flourishes within its 93% urban environment, where establishments such as shops and restaurants accept cards.

In contrast, rural regions like Bihar, with a mere 1.5% rate and 88% rural population, predominantly rely on cash or UPI due to a scarcity of card machines.

Income Levels: Chandigarh’s 11.0% rate correlates with its high per capita income of ₹4.65 lakh (CEIC 2024), enabling residents to afford credit.

Conversely, Bihar’s 1.5% rate is hindered by low income levels of ₹0.47 lakh, rendering credit cards less feasible.

Digital Infrastructure: The 8.5% rate in Karnataka is bolstered by Bengaluru’s rapid internet access and a 74% smartphone penetration (NFHS-5, 2021).

In contrast, Lakshadweep’s 0.01% rate suffers from unreliable networks, which impede online card transactions.

Education: Tamil Nadu’s 7.5% rate benefits from an 80% literacy rate, which aids individuals in comprehending the advantages of credit cards.

On the other hand, Jharkhand’s 1.0% rate is constrained by a 67% literacy rate, which limits the awareness of credit card options.

Bank Access: Maharashtra’s 9.5% rate is supported by banks like SBI providing cards in Mumbai.

In stark contrast, the remote region of Nagaland, with a 0.2% rate, has limited banking facilities, resulting in low credit card usage.

Progress and Obstacles

India’s credit card sector is projected to expand to approximately 109 million active cards by 2025, reflecting a 5.29% annual growth rate (Statista, 2022), with 458.65 million transactions anticipated in March 2025 (RBI, 2025).

Urban areas, particularly Delhi, are propelling this growth through rewards programs and e-commerce initiatives.

However, significant challenges persist. Rural regions, such as Bihar’s 88% rural population, experience less than 2% penetration due to low income levels and inadequate connectivity (World Bank, 2021).

Additionally, northeastern states like Mizoram, with a 0.2% rate, encounter infrastructural deficiencies that hinder the adoption of credit cards.

Source

• Statista. (2022). Credit card market in India: 2020-2025 forecast.
• National Payments Corporation of India. (2025). UPI transaction data: April-June 2025.
• Ministry of Finance, Government of India. (2024). Economic survey 2023-24.