Kiwi, a prominent player in India’s fintech and credit card landscape, has just released its much-anticipated 2025 report. This annual analysis offers insights into how consumer credit behavior, digital spending habits, and financial technologies are evolving in India. More importantly, it sheds light on the growing role of AI-driven personalisation in credit products, reshaping how we interact with money and credit in daily life.
The Indian Credit Card Market in 2025
The report reveals that India’s credit card industry continues its rapid ascent. With over 110 million active cards in circulation as of March 2025, growth has outpaced even the most optimistic analyst expectations. Factors fueling this surge include seamless Apply Credit Card Online processes, aggressive marketing by banks, rising consumer aspirations, and innovative products like UPI-linked RuPay credit cards.
Segmented Market Growth
- Tier-2 & Tier-3 Cities: These cities now contribute 37% of new credit card issuances (up from 24% in 2022), with digital onboarding and AI-based eligibility checks driving much of this demand.
- Young Professionals (Ages 23–32): Represent 44% of new card applicants. Ease of use, zero annual fee options, and tailored cashback offerings are especially attractive to this group.
Changing Spending Patterns
Digital payments remain dominant, but the Kiwi 2025 report notes subtle shifts in how and where Indians are spending:
- Online Shopping: Still king, led by e-commerce and delivery apps. SBI SimplyCLICK Credit Card and Amazon Pay ICICI Credit Card remain favorites because of strong cashback credit card rewards and instant approval.
- Travel & Dining: With restrictions eased, travel spending rebounded sharply. Credit cards such as HDFC Regalia Gold and Amex Platinum Travel have seen higher usage due to travel rewards and airport lounge benefits.
- Utilities & Fuel: Payments using UPI-integrated cards and exclusive benefits (like the Axis Bank Ace Card) have doubled in frequency, thanks to simplified bill pay and fuel cashback offers.
Rise of AI-Driven Personalisation
The standout trend, according to Kiwi’s analysis, is the increasing reliance on artificial intelligence for hyper-personalised credit card experiences:
- Real-Time Offers: AI now curates dynamic credit card offers based on shopping history, location, and lifestyle data. Cardholders receive targeted discounts and rewards, which they are more likely to use.
- Proactive Credit Limit Management: AI safely evaluates risk and spending trends, frequently offering instant limit upgrades or instalment options for big purchases.
- Fraud Alerts and Spending Insights: Increasingly smarter fraud detection models now block suspicious transactions within milliseconds. AI-powered spending insights and alerts are keeping users more informed and protected.
What Does Personalisation Mean for Users?
Customers see more meaningful communication and content within their banking apps. Recommendations for compare credit cards, savings tips, and EMI conversions are far more tailored. For example, if you frequently book travel, you’ll get nudges for travel rewards cards or special flight vouchers.
Zero Annual Fee Cards—Popularity and Pitfalls
Notably, zero annual fee cards are a big draw for first-time users. Products like the HSBC Platinum Credit Card and IDFC FIRST Millennia Credit Card have strong uptake, thanks to starter-friendly benefits:
- Zero hidden charges
- Low documentation & instant credit card approval
- Simple rewards conversion
However, the report cautions that some users end up missing out on premium benefits or real value due to lower cashback ceilings or fewer merchant offers compared to paid cards. Comparing features remains key for long-term savers.
UPI-Linked RuPay Cards—Blurring Payment Borders
2025 marks a sharp increase in UPI-linked credit cards, such as Jupiter RuPay Card and Federal Bank’s Signet RuPay. These combine the reach of UPI with traditional card rewards, enabling users to:
- Make credit payments via any UPI-enabled QR code
- Earn on-the-spot rewards on groceries, fuel, and local shopping
- Benefit from instant approval and clean, app-first interfaces
RBI’s focus on digital enablement has accelerated this shift (RBI).
Challenges Noted in the Kiwi Report
- Credit Score Tips: Despite wider access, many users are unaware of how to monitor and improve their credit scores. Missed payments and overdue bills have led to a steady uptick in first-time delinquencies.
- Transparent Fees: Lack of clarity about joining fees, annual charges, or hidden terms remains a worry, especially for those chasing promotional credit card offers.
- Financial Literacy: Many new users don’t fully grasp how minimum dues, EMI conversions, and interest rates work, which can result in costly mistakes if not addressed with education initiatives.
What Can Cardholders and Applicants Do in 2025?
- Always compare credit cards using impartial tools like Find My Card before applying
- Track your credit utilization and learn key credit score tips for long-term financial health
- Prefer cards with instant documentation, transparent fees, and meaningful credit card benefits
- Check for zero annual fee cards but review the limitations on rewards carefully
- Embrace digital platforms but beware of phishing and fraudulent links—prioritize cards with robust AI-driven security
FAQs on Kiwi’s 2025 Credit Card Trends
1. How is AI changing the Indian credit card experience?
AI is now deeply involved in everything from personalized offers, smarter rewards, and real-time fraud alerts to faster, more accurate instant credit card approvals. Most fintechs and banks use these tools to make the credit process seamless and safer for consumers.
2. Is it better to choose a zero annual fee card or a premium paid card?
Zero annual fee cards are good for beginners and infrequent users. But if you spend a lot, travel often, or want access to special deals, premium cards might offer more overall value despite the annual fee. Always check reward rates and compare benefits before deciding.
3. Are UPI-linked RuPay credit cards safe for everyday use?
Yes. They are backed by banks and regulated by the RBI, combining the security of credit cards with the flexibility of UPI. Just make sure you monitor app permissions and safeguard your phone and OTPs for added security.
4. How can I track and improve my credit score with so many cards?
Pay your bills on time, keep utilization below 30%, and avoid too many new applications at once. Use credit monitoring services and regularly check statements. Many apps now send helpful nudges for healthy credit behavior.
Ready to Choose Your Next Card Wisely?
Kiwi’s 2025 report highlights the pace of change in India’s digital payments and credit card markets. Whether you want the best cashback credit card, the lowest fee, or the latest in AI-powered personalisation, it’s vital to compare before you commit. Explore detailed, independent reviews and card-matching tools on FinWitty.com. For tailored options, head to Find My Card and find your ideal match today.