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Credit card spending growth slows to 5.9% in August as smaller transactions gain share

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Credit card spending growth slows to 5.9% in August as smaller transactions gain share

Credit card spending growth slows to 5.9% in August as smaller transactions gain share

The credit card base increased 10.5% year-on-year to 12.41 crore in August, with 11.96 lakh cards added during the month. The pace of card additions has exceeded spending growth for the past two months, with the gap widening to 450 basis points in August from 270 basis points in July. Spending per card fell 4.1% year-on-year to Rs 16,351.

Credit card transactions rose 28.1% to 63.2 crore in August, but the average transaction value fell 17.4% to Rs 3,201 as cards were used more frequently for smaller payments. The card base grew 10.5% to 12.41 crore, outpacing spending growth, while spending per card declined 4.1% to Rs 16,351. Private banks regained spending share, rising 121 basis points to 73.34%, while public sector banks' share fell 145 basis points to 20.75%. PoS spending rose 9.1% year-on-year against 3.9% growth online, while overall card spending is expected to rise to Rs 2.09-2.16 lakh crore in September.

4% growth recorded in July, as a shift towards smaller transactions weighed on spending growth despite a sharp increase in card usage. 4% to Rs 3,201. 96 lakh cards added during the month. The pace of card additions has exceeded spending growth for the past two months, with the gap widening to 450 basis points in August from 270 basis points in July. 1% year-on-year to Rs 16,351.



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