Sunday, June 16, 2024
HomeNewsSwipe Right: Credit Card Usage on the Rise

Swipe Right: Credit Card Usage on the Rise

Consumers are becoming increasingly card happy, as they are beginning to swipe right with far more frequency. Average spending on non-premium credit cards rose by more than two-thirds, from 4,368 in January-June 2021 to 7,290 during the first six months of 2022. ­That’s as much as a premium credit card. ­e fastest growing payment categories are fast food, clothes, fuel, utilities, and groceries.

Does this mean card usage is coming of age in India? Perhaps. But inflationary pressures mean that consumers are spending more this year as compared to last year for the same basket of goods. It could also indicate that consumers are shifting spends to credit cards as bank balances get crunched by rising expenses, with some users potentially taking on more debt. Will this signal more defaults on payments by end users? With the festive season looming large, time will tell.

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