Indian consumers scaled back on credit card usage in September 2026, with overall spending dropping 5.9% year-on-year to ₹2.04 lakh crore. This marks the first annual decline in credit card spending since February 2021, according to recent analysis.
The contraction is primarily attributed to a high comparison base from September 2025, when spending surged by nearly 23% annually. Last year's spike was driven by Goods and Services Tax (GST) rate rationalization coinciding with an early start to online festive sales.
Online vs. Point-of-Sale Transactions
A significant factor in the overall decline was a sharp reduction in online credit card spending. Online transactions fell 12.5% year-on-year to ₹1.26 lakh crore in September 2026, down from ₹1.44 lakh crore a year earlier. This shift suggests that a larger portion of festive season expenditure is now anticipated in October and November.
Conversely, point-of-sale (PoS) transactions, which primarily cover payments made at physical retail locations, showed resilience. PoS spending increased by 7.18% to ₹77,751.47 crore, up from ₹72,543.89 crore in the same period last year.
Major Banks' Performance
Spending trends varied among India's leading credit card issuers:
- HDFC Bank: As the largest issuer, HDFC Bank saw a 7.52% year-on-year increase in spending, reaching ₹65,139.72 crore.
- SBI Card: The country's largest standalone issuer reported a 14.09% annual decline in spending, totaling ₹34,895 crore.
- ICICI Bank: Experienced a substantial 26.26% year-on-year contraction, with spending at ₹30,911.48 crore.
- Axis Bank: Registered an 11% annual decline in credit card spending, reaching ₹23,148.67 crore.
Credit Card Additions Continue to Rise
Despite the dip in spending, the expansion of credit card penetration continued. The total number of credit cards in circulation reached 125.31 million in September. Monthly card additions grew by 10.5% year-on-year, marking the fastest pace observed since November 2024.
- HDFC Bank added 280,353 cards.
- SBI Card added 208,026 cards.
- Axis Bank added 259,525 cards.
- ICICI Bank added 29,621 cards.
Festive Season Outlook
Analysts anticipate a recovery in credit card spending during October and November as the festive shopping season gains full momentum. The continued growth in new card additions and the overall cards-in-force indicate a sustained expansion in credit card usage across the country, with expenditure expected to shift to later months this year.