Driven by technological changes and growing internet access among consumers, the volume of payment cards in the country is projected to touch 210 million in the next two years, with debit cards accounting for more than half of the total.
The debit cards in circulation are expected to touch 169 million by 2010, consultancy firm Celent said in a report.
However, Celent said in terms of transaction value, credit cards would emerge on top as people would use the same for purchases and bill payments.
Currently, the country has about 130 million payment cards including debit and credit, in circulation.
"... The number of cards in circulation will hit 210 million by 2010. Of these, 169 million will come from debit cards, and about 40 million will come from credit cards," Celent pointed.
The report titled 'Payments in India Going the e-Way' noted that credit cards would overtake debit cards by value of transactions, because customers would continue to use credit cards for purchases and bill payments.
As of now, the Indian card market consists 27.5 million credit cards worth 14.5 billion dollars.
A majority of credit card purchases come from shopping, jewellery, dining and traveling, which contribute nearly 70 per cent of credit card payments. Fiscal year 2008 saw as much as 288 million transactions being processed through card payments.
According to Celent, technology changes, growing internet access and mobile subscriber base, rising consumer confidence, and convenient delivery payment models are the prime factors for the growth in e-payments.