Credit card spending in India rose by 19% YoY in July 2024, reaching Rs 1.7 trillion, driven by increased consumer confidence and usage.
Significant Growth in Credit Card Usage
In July 2024, credit card spending in India saw a substantial increase, rising by 19% year-on-year to Rs 1.7 trillion, according to a report published by SBI Securities. This growth indicates a greater reliance on credit cards for transactions, suggesting increased consumer confidence and a shift in economic behavior.
Surge in Transaction Volumes
The SBI Securities report also highlighted a sharp rise in the number of transactions, which jumped by 39% year-on-year, totaling 38.4 crore transactions in July 2024. This surge reflects the widespread adoption of credit cards as a primary payment method among Indian consumers.
Leading Banks in Credit Card Transactions
Among banks, HDFC Bank led the pack with the highest transaction volumes, processing 9.9 crore transactions through its credit cards in July. ICICI Bank followed with 7.1 crore transactions, and SBI came in third with 6.3 crore transactions. In terms of transaction value, HDFC Bank again topped the list, with a total spending of Rs 44,369 crore, followed by ICICI Bank at Rs 34,566 crore and SBI at Rs 26,878 crore.
Shift in Consumer Behavior Towards Higher-Value Transactions
The SBI Securities report also noted a slight increase in the average transaction value (ATV), which grew by 1.4% month-on-month in July 2024. This figure marks the first rise in ATV in ten months, signaling a potential shift towards higher-value transactions after a period of stagnation.
Conclusion
Overall, these trends reflect a growing use of credit cards in India, fueled by increased consumer confidence and the convenience of credit card transactions. The data from July 2024 illustrates the expanding role of credit cards in the everyday financial activities of Indian consumers.
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