Mumbai: Spending on credit cards and fresh card additions hit record highs in September, central bank data showed, reflecting the combined impact of festivals and the biggest across-the-board cuts in producer taxes on domestic consumption.
Total monthly card spends crossed ₹2.16 lakh crore, translating into on-year growth of 22% and sequential growth of 13%. Credit card spends had clocked ₹1.77 lakh crore in the same month last year.
Spending on e-commerce websites was the highest - at more than ₹1.44 lakh crore. Spending through point-of-sale devices was more than ₹72,000 crore.
"The surge in high-ticket festive purchases through credit cards reflects a growing affinity towards value and convenience," said Santosh Agarwal, CEO, Paisabazaar. "Consumers are using credit cards more strategically, timing their big-ticket buys to coincide with festive season deals and card-specific rewards."
From September 22, prices of consumption goods across the spectrum were drastically reduced after the Centre slashed GST slabs, and brought most items to lower GST bands.
Meanwhile, fresh credit card additions neared 1.1 million in September, taking the total credit card tally to 113.3 million. In the same month last year, less than 700,000 cards were added. Credit card spending, which was growing at a tepid pace, gathered momentum in September and is expected to quicken in October aided by the onset of the festive season, attractive e-commerce discounts and retailer-led promotional campaigns, which typically drive a surge in discretionary purchases.
Total monthly card spends crossed ₹2.16 lakh crore, translating into on-year growth of 22% and sequential growth of 13%. Credit card spends had clocked ₹1.77 lakh crore in the same month last year.
Spending on e-commerce websites was the highest - at more than ₹1.44 lakh crore. Spending through point-of-sale devices was more than ₹72,000 crore.
"The surge in high-ticket festive purchases through credit cards reflects a growing affinity towards value and convenience," said Santosh Agarwal, CEO, Paisabazaar. "Consumers are using credit cards more strategically, timing their big-ticket buys to coincide with festive season deals and card-specific rewards."
From September 22, prices of consumption goods across the spectrum were drastically reduced after the Centre slashed GST slabs, and brought most items to lower GST bands. Meanwhile, fresh credit card additions neared 1.1 million in September, taking the total credit card tally to 113.3 million. In the same month last year, less than 700,000 cards were added. Credit card spending, which was growing at a tepid pace, gathered momentum in September and is expected to quicken in October aided by the onset of the festive season, attractive e-commerce discounts and retailer-led promotional campaigns, which typically drive a surge in discretionary purchases.
You may also like
PKL 12: Puneri Paltan fight off resilient Telugu Titans, set up ultimate clash with Dabang Delhi
Huge adaptation finance shortfalls leave developing countries exposed to rising seas, deadly storms, and searing heat, flags a new UN report
AUS vs IND 2025: 'One shot and the bowler goes off plan' - Aakash Chopra lauds Suryakumar Yadav's game-changing approach
SP leaders Azam Khan, Irfan Solanki meet in Rampur after release from jail
Rahul & Priyanka Gandhi to address around 15 rallies in Bihar campaign
