India digital finance expansion and fraud

In mid‑2026 India’s digital finance sector kept expanding on two fronts. By early July, the number of credit cards had nearly tripled to 10.7 crore, but penetration remained low at about 25 % of the credit‑active population, and competition from UPI and other digital payments was eroding cards’ share of consumption loans. Credit quality improved, with overdue balances falling.

A few weeks later, the focus shifted to the broader digital lending ecosystem, which now offers end‑to‑end online loan applications and rapid disbursements. However, the rapid uptake of digital payments and credit cards coincided with a sharp rise in fraud losses, totaling Rs 4,457 crore over the past eleven financial years. Internet‑banking fraud accounted for the largest share, and credit‑card fraud alone exceeded Rs 812 crore in 2023‑24, underscoring the growing risk alongside the sector’s growth.