Digital payments are deepening across India. Because of this, credit cards are finding a new role in an ecosystem shaped by UPI, tokenisation (a security method that replaces card details with codes), and biometric checks. Rather than competing, UPI and credit cards now work together. UPI drives daily transactions, while cards offer rewards and financial flexibility.
In an interview with Mint, Salila Pande, MD & CEO of SBI Card, discusses how credit cards are evolving in the UPI era, trends across digital and PoS spending, the role of EMIs in managing affordability, responsible credit usage, lifestyle-driven engagement, and how AI-led underwriting and hyper-personalised rewards are shaping the future of the industry.
Edited ExcerptsHow is credit card behaviour changing in the UPI era?
With the modern Indian customer favouring convenient, seamless, secure and rewarding payment experiences, the credit card market is set for robust long-term growth. Developments such as tokenisation, biometric authentication and UPI–RuPay integrations are making payments increasingly seamless across devices and QR platforms, reducing friction while enhancing security. Owing to these factors, UPI and credit cards have become complementary; UPI drives acceptance and frequency, while credit cards provide liquidity, rewards, and financing flexibility. This change in form factor is further enhancing the usage of credit cards in India, leading to higher adoption and penetration. The reinvention is therefore about integration, making credit cards more digital and more twitter-tweetded in India’s rapidly evolving payments landscape.
Which credit card transactions — PoS, digital and international — have witnessed an increase in the past few months?
Customers are increasingly prioritising speed, convenience and seamless transactions. As a result, India’s consumption landscape is rapidly shifting towards digital-first, experience-driven and hybrid spending behaviour. At SBI Card, retail spends grew 14% YoY to ₹91,962 crore across most PoS and online categories in Q3 FY26. Online spending continues to grow strongly across both non-discretionary and discretionary categories.
At SBI Card, the share of online spending in retail spending rose to 62.1% in the first nine months of FY26, up from 58.5% in the first nine months of FY25, reflecting how digital purchasing has become mainstream. Key spend categories include department stores, health, utilities, education, consumer durables, furnishings and hardware, apparel, restaurants, jewellery, and travel, among others.
EMIs and instant credit — are we making spending easier or creating deeper debt traps?
Access to structured credit has played a vital role in making large purchases more manageable for households — whether converting a smartphone purchase into affordable EMIs, upgrading home appliances for a better lifestyle, or handling an unforeseen medical expense without affecting savings.
When designed responsibly and communicated transparently, such solutions provide flexibility. Payment options such as EMIs significantly enhance affordability and improve cash flow management, allowing customers to spread large expenses into manageable monthly payments, maintain liquidity, and keep finances more predictable.
Defaults and delinquencies often rise after credit booms. Some users go overboard and max out their cards. What would you advise them?
When used responsibly, credit cards are a great payment instrument that offers a simple, safe and seamless experience. It is important for customers to follow a disciplined approach while using their credit cards, including making timely repayments, to protect both financial stability and long-term borrowing capacity.
We encourage customers to actively monitor their spending through the SBI Card app, which provides real-time transaction alerts, usage tracking, and spend analytics to help cardholders stay within their planned budgets and avoid approaching their credit limits.
Customers love lifestyle perks — airport lounges, dining and travel. Do you think the benefits drive card adoption more than the credit itself?
Today, customers increasingly view credit cards as lifestyle companions rather than purely borrowing instruments. Every customer has their own spending aspirations; for instance, some seek adventure through travel and exclusive lifestyle benefits, while others look for rewarding shopping experiences.
Recognising evolving customer needs, SBI Card has, over the years, developed an extensive and diversified core and co-brand product portfolio, ranging from super-premium to mass.
While lifestyle benefits may spark initial interest and drive adoption, sustained engagement and consistent value ensure loyalty and retention. At SBI Card, we have seen this play out clearly across our portfolio. For instance, credit cards such as SBI Card MILES have resonated strongly with frequent travellers seeking travel-centric rewards and milestone benefits. On the other hand, SimplyCLICK SBI Card is sought after by customers seeking benefits and savings on online spending.
If you could change one habit of Indian credit card users overnight, what would it be?
We want customers to be aware and vigilant. They should transact only on trusted platforms and websites, avoiding suspicious links and unverified sources. Customers must stay alert to phishing emails, calls or messages, and verify any requests related to account updates or offers. They should never share confidential information such as OTPs, CVVs, PINs, passwords or messages.
What does the future credit card look like — invisible payments, AI-driven limits, hyper-personalised rewards?
India’s credit card industry is poised for strong long-term growth and is set to expand significantly over the next five to 10 years, driven by government reforms, digital payment integration and technological advancements. Developments such as tokenisation, biometric authentication and UPI–RuPay integrations are making payments increasingly seamless across devices and QR platforms.
At the same time, AI-led underwriting and advanced analytics are enabling dynamic limit management, real-time fraud detection and contextual credit. Hyper-personalisation is redefining value delivery, as rewards and offers are becoming more aligned with individual spending behaviour, making engagement more relevant.
