Credit Card Use Soars This Festive Season, Transactions Up 35-50%

Credit card usage and other credit-based payment methods, like pay-later products, have seen a significant rise during this year’s festive sales, according to industry insiders.

Trends indicate a 35-50% increase in the total number of transactions this festive season compared to last year. A large portion of these payments has come from credit cards, EMIs (equated monthly installments), and pay-later options.

Between October 3 and 12 this year, Razorpay, a payment platform, reported a remarkable 106% increase in credit card transactions and a 60% rise in UPI transactions compared to the same period last year, said COO Rahul Kothari.

Amazon Pay, the financial service from the ecommerce giant, found that around 20% of purchases were made using EMIs, with 80% of those transactions being no-cost. In these no-cost transactions, the company subsidizes the costs, allowing consumers to pay in installments without extra charges. Popular items purchased on no-cost EMIs included video game consoles like the PlayStation 5.

During the Amazon Great Indian Festival, over 25% of customers used Amazon Pay options, including Amazon Pay UPI, Amazon Pay ICICI Bank Credit Card, Amazon Pay Later, and Amazon Pay balance for shopping, said Amazon Pay CEO Vikas Bansal. The platform also saw a 30% increase in usage for recharges and bill payments compared to last year.

In addition to pay-later products, credit card use has also surged this year. Worldline India’s Executive Vice President Sheik Mohideen stated that credit card transactions have increased by 53% compared to the previous year, showing a strong rise in credit card adoption.

According to data from the central bank, there were 105 million credit cards issued in India as of August. The sectors driving this increase in credit card usage include lifestyle, fashion, and electronics.