Credit card spending in India continued its strong run in 2025 and into 2026, driven by urbanisation, digital adoption, and rising incomes. Spend growth is no longer just a metro story—Tier-2 and Tier-3 cities are now key contributors.
The Big Picture: Credit Card Boom
India’s monthly credit card spends have stayed elevated:
- Credit card spending moderated to ₹1.89 trillion in November 2025 after crossing ₹2 trillion during the festive season in September–October 2025. The festive surge partly reflected GST rate cuts and seasonal demand. Business Standard
- In September 2025, credit card spends hit a record high of ₹2.17 trillion. Business Standard
- There were ~114.9 million outstanding credit cards in circulation in November 2025 (vs. ~113.4 million previously). Business Standard
- Private banks continue to lead issuance and spending activity. Business Standard
These figures indicate that credit card use is expanding both in volume and value, with growth sustained through year-end 2025 into early 2026.
Metro Cities: Traditional Leaders in Spending
Metro cities still dominate overall credit card expenditures.
Top Metro Contributors:
- Mumbai, Delhi NCR, and Bengaluru remain the largest contributors to credit card spends across India.
- Large professional populations and higher disposable incomes continue to push spends in these hubs.
- In earlier trend reports, annual per-user credit card spending ranged widely in major cities reflecting diverse spending power. (Note: relevant city survey data from 2025 showed such patterns). — earlier surveys found annual spends per user ranging from ₹2 lakh to ₹50 lakh in top cities. ICICI Direct
Why metros still lead
- Better financial infrastructure and availability of premium card products.
- Higher e-commerce and travel spend share.
- Greater penetration of credit insurance and reward programs.
The Rise of Tier-2 and Tier-3 Cities
Smaller cities are now driving incremental credit card adoption and spending.
- Demand from Tier-2 and Tier-3 cities grew strongly as digital payment infrastructure expanded beyond metros.
- UPI-linked credit card adoption has been a key driver, with RuPay credit cards now handling a substantial share of transactions by volume and reaching deeper into non-metro markets. CoinLaw
- Digital lending products and credit-building tools (e.g., initiatives aimed at first-time borrowers and smaller city users) are emerging to boost credit inclusion. The Economic Times
These trends reflect a democratization of credit, with smaller cities rapidly closing the gap with metros.
What Are People Spending On?
Across cities, several categories consistently show high spend:
- E-commerce dominates credit card spend value (over 60–66% in many months of 2025). ETBFSI.com
- Travel, accommodation, and digital bill payments are key spend drivers in both urban and emerging markets.
- Contactless and UPI-linked digital transactions continue to grow as a share of card usage.
Leading Banks & Market Share
The credit card issuer landscape continues to be led by private sector banks:
- HDFC Bank, SBI Cards, ICICI Bank, and Axis Bank remain among the largest by spending and card volume. Business Standard+1
- Market share dynamics are shifting incrementally as newer digital products (e.g., UPI-linked cards) gain traction.
- SBI Cards, historically one of the largest players, remains a major issuer in the Indian credit card market. Wikipedia
Public data also shows that market leadership partly reflects network effects and digital innovation.
Credit Card Penetration & User Patterns
India’s credit card penetration remains modest compared to developed markets, but it is rising:
- Earlier RBI data noted ~111 million credit cards as of mid-2025. Business Standard
- Monthly transaction volumes approached record levels in FY26, with nearly 496 million transactions in September 2025. ETBFSI.com
Card adoption continues to rise as users treat cards not just for discretionary spends but also for everyday purchases, amplified by UPI linkage and reward structures.
Why Metro Cities Still Lead, but Not Alone
Metro cities benefit from:
- Higher incomes,
- Better digital payment infrastructure,
- Greater exposure to international travel and high-value spends.
But Tier-2/3 cities are fast catching up due to:
- Rising financial literacy,
- More acceptances of digital payments,
- Higher e-commerce penetration.
Products targeting these markets (e.g., digital first cards) support this transition.
The New Definition of Affluence
Consumer profiles are evolving:
- Aspiration-driven spending is no longer metro-exclusive.
- Young professionals in smaller cities increasingly tap credit cards for lifestyle, travel, and online shopping, aligning with broader digital trends. Storyboard18
This represents a shift from elite to mass affluence in India’s credit consumption patterns.
The Future: What to Expect
2026 and beyond will likely see:
- Continued dominance of digital channels in credit card spending.
- Faster adoption outside metros.
- New product innovations (e.g., fully UPI-enabled credit cards like the Google Pay Flex Axis Bank card). The Times of India
- Greater segmentation of card users across income and lifestyle cohorts.
Key Takeaways (Updated for 2026)
- Credit card spends stayed elevated, with ₹2.17 trillion in September 2025 and ₹1.89 trillion in November 2025. Business Standard+1
- Metro cities remain leaders, but smaller cities are rapidly closing the gap.
- E-commerce dominates card spend value, often over 60%. ETBFSI.com
- 111 million+ credit cards were in use by late 2025, with growth into 2026. Business Standard
- Digital adoption and new fintech offerings are reshaping user behaviour.
Link for 2025 Article – https://gokiwi.in/blog/indian-cities-with-highest-credit-card-spend-in-2025/
