Business

Credit card spending increased 14% in September


MUMBAI: Assessing consumer confidence, in-store credit card spending increased 14% in September compared to August. Online spending increased by 0.7% month-on-month, even as the number of credit cards dwindled as banks continued to clean up their books of inactive cards.
Data due to RBI shows that the total value of spend in physical stores has skyrocketed to Rs 77,267 in September this year, up from Rs 67,414 in August 2020 —probably a 14% increase. This increase coincides with the start of the festive season, which begins with Ganesh Chaturthi in the country.

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The decline in card numbers is due to a new RBI regulation that requires banks to deactivate cards that have not been used for more than a month from issue. Meanwhile, e-spend, which spiked in August due to sales by major e-commerce players, was almost flat at Rs 45,287 in September from Rs 44,943 in the previous month. . RBI only recently started analyzing online and in-store spending. In September 2021, total credit card spending stood at Rs 80,227 compared to Rs 1,22,553 in September 2022.
Overall, the total number of credit cards fell from 7.79 crore in August to 7.77 crore in September. In September, ICICI BankCard base’s down 4.4%, or nearly 6.2 lakh cards down to 1.3 crore. This was underrated by Standard Chartered, reducing 10,000 cards (nearly 7.8%) to 12.2 thousand cards. HDFC also lost over a thousand cards with their card base currently at 1.6 crore. Kotak Bank, SBM Bank and IDFC First add the most cards. The number of outstanding credit cards has increased by almost one crore since September 2021 when they stood at 6.5 crore.
The increase in in-store spending is largely due to SBI . Card, ICICI Bank and Axis Bank, saw online spending increase by 32%, 26% and 42% respectively. Online spending increases the most for Axis Bank and ICICI Bank 13% and 6% respectively.

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