Credit card spending on e-commerce platforms saw a significant surge of 25 per cent during the Diwali 2023 period compared to the previous year, according to Visa’s payment data analysis. This increase, along with an overall growth of around 18 per cent in credit card expenditures, indicates a noteworthy shift in consumer shopping patterns.
Visa highlighted that while debit card usage experienced a decline, with more people opting for UPI transactions, credit card spending witnessed an 18 per cent boost during Diwali. This suggests a growing preference for credit cards in festive shopping activities in India. During the five days of Diwali, NPCI data recorded 187 crore UPI transactions, totalling almost Rs 2.7 lakh crore.
In-store use
In contrast, in-store spending using credit cards during the festival days showed a year-on-year growth of only 12 per cent, falling short of the 25 per cent growth observed in online credit card transactions.
Although specific transaction amounts were not disclosed, banks estimate that credit card expenditures in November will be around Rs 2.3 lakh crore, with approximately 25 per cent of the spending concentrated around Diwali. Banks expect online transactions to surpass physical transactions, continuing the trend observed in October.
Jewellery stores, electronic stores, and grocery stores/supermarkets emerged as the top categories for in-store commerce during Diwali 2023. This highlights the enduring significance of physical retail spaces, particularly for products like jewellery and electronics.
In online transactions, there was a preference for clothing and accessories, as well as discounted store items, showcasing a trend of consumers increasingly choosing to buy clothes online.
