India’s credit card spending is still rising fast. In 2025 and into 2026, spending hit new highs and showed strong demand across sectors.
New Peaks in Credit Card Spending
In September 2025, Indians spent a record ₹2.17 lakh crore on credit cards in a single month — the highest ever recorded — driven by festive demand and growing online shopping. ETBFSI.com+1
Even after festive peaks, credit card use remains strong. In November 2025, total spending cooled but still stood around ₹1.90 lakh crore, up nearly 12% compared with the same month the year before. Whalesbook
What’s Driving Growth in 2026?
1) More Cards, More Users
Banks are adding new credit cards fast. In late 2025, issuers expanded their bases substantially, pushing total outstanding credit cards to over 114 million. Whalesbook
2) Online Shopping Dominates
Ecommerce now accounts for over 60% of total credit card spend value. Consumers are using cards for groceries, travel, subscriptions, and big-ticket tech buys. Upstox – Online Stock and Share Trading
3) Digital Payment Trends Reinforce Usage
India’s real-time payments network, UPI, processes huge volumes and frequently integrates with cards. This seamless flow keeps digital payment habits strong — reinforcing credit card usage even as UPI stays dominant overall.
Where People Spend the Most
- E-commerce & digital platforms: Leading the charge with the biggest share of spend.
- Travel, dining, and lifestyle: Reward programs and EMIs make credit cards attractive for these categories.
- POS (offline) spending: Still relevant, but online gains share month by month.
Seasonality Still Matters
Festive peaks like Diwali and major sale days continue to push monthly totals higher. After these periods, volumes dip — but overall trends stay upward.
What’s New for 2026
- Banks are tweaking fee structures and features — like new transaction fees on gaming and travel categories — to balance growth with profitability.
- RBI is pushing faster credit reporting timelines to improve loan and card risk data.
What This Means for You
Consumers
Credit cards are now central to how Indians pay — especially online and for lifestyle spending. Rewards, flexible EMIs, and contactless options make them a default choice.
Banks & Merchants
The expanding digital ecosystem and acceptance points are widening the net for card use. Offline merchants adopting SoftPOS and QR-based payments can tap deeper consumer demand.
Bottom Line
India’s credit card market didn’t just hit records in 2025 — it laid the groundwork for a bigger 2026. More users, more transactions, more online dominance, and evolving payment tech show that credit cards are now a core part of India’s digital economy.
