Credit Card Spends Hit Record High in September: Online Transactions Lead the Surge

Credit card expenditures in the country soared to an unprecedented Rs 2,167 billion in September, a report by stock market company ACMIIL revealed. This record-breaking figure was achieved through substantial growth in online transactions and increased consumer engagement in e-commerce platforms.

The report highlighted a 13.4 per cent month-on-month and 23 per cent year-on-year increase in credit card spending, adding around Rs 255 billion to the total outlay. Online spending surged by 21.7 per cent MoM and 25.1 per cent YoY, while point-of-sale transactions saw negligible change from the previous month.

The surge in card spends was predominantly led by four major banks: SBI Cards, ICICI Bank, Axis Bank, and HDFC Bank. Notably, SBI Cards experienced a MoM increase of 22.9 per cent, adding Rs 75.6 billion in expenditures, while ICICI Bank reported a 21.5 per cent rise, contributing Rs 74.3 billion. Axis and HDFC Banks also posted significant gains.

Fueling this trend, e-commerce platforms Amazon and Flipkart hosted lucrative festive sales, where these banks played pivotal roles as payment partners, thereby intensifying online transactions. Despite the sector's overall upward trajectory, IndusInd Bank was an exception, recording a 13.5 per cent MoM decline in spending.

The report further noted a shift towards digital payments, with online transactions accounting for 66.5 per cent of total spends by September, up from 61.9 per cent in August. The decline in POS transactions from 38.1 per cent to 33.5 per cent underscores the evolving consumer preference for digital over physical payment modes. The report also emphasized the role of festive offers and cashback incentives in boosting credit card usage. (ANI)