September Credit Card Activity Insights
In September, credit card transactions experienced a robust increase of 21% year-over-year, totaling nearly 0.60 billion. However, despite the rise in transaction volume, the overall spending value witnessed a 6% drop, amounting to Rs 2.04 lakh crore, according to data analyzed by 1Lattice.
E-commerce Dominates Transactions
E-commerce has emerged as a significant driver of credit card activity, representing 50.9% of total transaction volumes and 61.8% of spending value in September. In comparison, point-of-sale (POS) transactions accounted for 48.3% of volumes and 38% of the value. The share of e-commerce credit card transactions by volume has notably climbed from 47.6% in FY24 to 50.9% in September 2026, demonstrating a clear shift toward online shopping.
Shift in Spending Patterns
While the volume of credit card transactions rose, the average ticket size has somewhat diminished. This divergence suggests that increased transaction frequency has not led to a proportional rise in spending, highlighting changing consumer habits. Year-on-year card spending also reported a slight decrease of about 5.9% to 6.2% in September, which reflects a decline from last year's figures. Still, the number of credit cards issued surged by 10.4% YoY, reaching approximately 12.53 crore.
Diminishing Debit Card Usage
In contrast to credit cards, debit card transactions faced a continued decline. The volume of debit card transactions dropped by 9% YoY to around 0.49 billion, with a corresponding decrease in value by 5% to Rs 2.52 lakh crore. Over the month, transaction volumes declined by 4%, while values fell by 3%.
ATM Transactions Lead
When looking at the breakdown of debit card usage, ATM transactions continued to dominate. They accounted for 80.4% of total transaction volumes and 86.5% of the value processed. Meanwhile, POS and e-commerce transactions represented smaller fractions, contributing 14.3% and 5.3% of debit card volumes, respectively.
Trends in Digital Payments
The shifting dynamics in credit and debit card usage mirror broader trends in the digital payments landscape. Excluding NEFT, retail digital spending rose by 16.4% YoY in September, totaling Rs 44 lakh crore. Notably, the share of credit cards in this overall digital spending declined to 4.64% compared to the previous year.
As consumers adjust their spending habits, the growth in credit card transaction volumes juxtaposed with a decline in spending value indicates an evolving financial landscape. With e-commerce on the rise and debit card usage waning, the market continues to adapt to changing consumer preferences.
Tag: Credit Cards