Credit card spending fell 5.9 percent year-on-year to around ₹2.04 lakh crore in September 2026. This was the first decline since 2021. The main reason for this was the decline in online payments.
Frugality or prudence? Credit card spending fell 5.9% for the first time since 2021.
This festive season has presented a different picture regarding shopping and spending. People typically make more payments with credit cards around the holidays, but the September figures tell a different story.
Total credit card spending in the country has declined. Significantly, in September, credit card spending decreased year-on-year for the first time in nearly five years.
The biggest decline in online shopping
Credit card spending through online payments declined by 12.5 percent in September to ₹1.26 lakh crore, compared to ₹1.44 lakh crore in the same period last year. Meanwhile, payments made at shops and other commercial establishments through card swipes or machines increased, with spending through these channels rising 7.18 percent to ₹77,751.47 crore.
Credit card spends stood at Rs 2.04 lakh crore in September.
According to the report, a total of ₹2.04 lakh crore was spent through credit cards in September 2026. This is a 5.9 percent decrease compared to September 2025. The previous year-on-year decline in credit card spending was seen in February 2021.
Last year's strong base is believed to be a major reason for this decline. Credit card spending increased in September 2025 due to changes in GST rates and the early start of festive shopping. During that period, spending increased by 13.3 percent to ₹2.17 lakh crore compared to August 2025. This year, the start of festive shopping in October has impacted the September figures.
Expenses may increase in October and November.
Despite the decline, the number of credit cards in India is increasing. The total number of credit cards reached 125.3 million in September, a year-on-year increase of 10.5 percent.
Experts estimate that credit card spending could rebound in October and November due to increased holiday shopping, including Diwali. This figure could reach ₹2.28 to ₹2.38 lakh crore in October. However, inflation and rising interest rates may impact purchasing behavior.
Differences seen in data from different banks
Looking at the performance of the banks, HDFC Bank's credit card spend increased by 7.52 percent year-on-year to ₹65,139.72 crore. SBI Card spend, on the other hand, declined by 14.09 percent to ₹34,895 crore. ICICI Bank saw a 26.26 percent decline, and Axis Bank saw an 11 percent decline year-on-year.
