Indian consumers demonstrated a significant increase in their credit card spending in July this year, marking a 19% increase compared to the same month last year.
According to a report released by SBI Securities, the total expenditure by credit card users across the country reached an impressive Rs 1.7 trillion. This substantial uptick highlights the growing reliance on credit cards for transactions, reflecting broader economic trends and consumer confidence.
The report also highlighted a considerable increase in transaction volumes, which surged by 39% year-on-year, reaching a total of 38.4 crore transactions in July 2024. This increase in the number of transactions underscores the widespread adoption and usage of credit cards as a preferred payment method among Indian consumers.
"Credit card spending in India increased 19% YoY to Rs 1.7 trillion in Jul'24. The transaction volume during the month was 38.4 crore, up 39% YoY" said the report.
The report also noted that among the banks, HDFC Bank emerged as the leader in terms of transaction volumes, with its credit cards facilitating 9.9 crore transactions during the month. ICICI Bank followed closely with 7.1 crore transactions, while SBI secured the third position with 6.3 crore transactions.
In terms of transaction value, HDFC Bank again led the way, with a total spend of Rs 44,369 crore through its credit cards in July. ICICI Bank and SBI followed with Rs 34,566 crore and Rs 26,878 crore, respectively. The report said "In Jul'24, transaction volumes was led by cards issued by HDFC Bank (9.9 crore) followed by ICICI Bank (7.1 crore) and SBI (6.3 crore)".
Additionally, the average transaction value (ATV) also saw a marginal increase of 1.4% month-on-month in July 2024. This marks the first increase in ATV in ten months, suggesting a shift in consumer behaviour towards higher-value transactions after a period of stagnation.
Overall, these figures reflect the growth of credit card usage in India, driven by increased consumer confidence and the convenience offered by credit card transactions.
