Festive sales push credit card spending to record ₹1.2 lakh crore

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India’s festive season has rewritten the digital payments playbook. Credit card spending online surged to an all-time high of ₹1.2 lakh crore in September, led by e-commerce festivals like Flipkart’s Big Billion Day and Amazon’s Great Indian Festival.

According to transaction data, September 22 marked a milestone: credit card transactions online crossed ₹10,000 crore in a single day for the first time. By September 26, the total had already touched ₹1.03 lakh crore — nearly equal to last October’s festive peak — with several shopping days still left.

The spike underscores a shift in consumer payment preference. Debit card usage fell to ₹11,000 crore this September, down from ₹14,300 crore last October, showing that buyers are increasingly turning to credit for cashback, EMI schemes, and exclusive festive offers. UPI, India’s most widely used payment mode, saw little change — daily transactions dipped slightly during sales but remained near the 640–670 million range.

Co-branded credit cards, fintech-issued RuPay cards integrated with UPI, and aggressive bank-led discounts have further boosted credit card appeal. Industry experts note this is not a structural decline for UPI but rather a tactical dominance of cards during festival-driven events.

Overall, the data reflects a recalibration of consumer behaviour:

• Credit cards dominate high-value, event-driven purchases.

• UPI remains the everyday payments leader.

• Debit cards continue to lose relevance in online shopping.

For banks, retailers, and brands, the surge highlights how payment-linked offers are now central to festive season strategies.