Has Credit Card Spending Declined in October as POS Transactions Surge?
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Synopsis
In October, credit card spending saw a slight dip, totaling Rs 2,142 billion, while point-of-sale transactions surged by 22%. This shift reflects changing consumer behaviors, especially during festive seasons. Discover how card trends are evolving in this insightful analysis.
Key Takeaways
- Credit card spending decreased by Rs 2.5 billion in October.
- Point-of-sale transactions surged by 22 percent month-on-month.
- Online spending fell by 12.7 percent month-on-month.
- The top 10 banks accounted for 94 percent of total spending.
- HDFC Bank led in new card issuance with 0.14 million cards.
New Delhi, Dec 2 (NationPress) Credit card expenditures saw a decrease of Rs 2.5 billion in October, reaching Rs 2,142 billion. This represents a 1.1 percent decline month-on-month but a 6.1 percent increase year-on-year, largely due to a notable rise in point-of-sale transactions, according to a report released on Tuesday.
According to the report from Asit C. Mehta Investment Intermediates Limited, "The robust growth in POS transactions is likely linked to festive spending during Diwali, while online spending has softened due to a high comparison base from the previous month."
Point-of-sale transactions increased by 22 percent month-on-month and 11.4 percent year-on-year, whereas online spending saw a 12.7 percent month-on-month decline, yet a 2.7 percent annual increase. The top 10 banks made up 94 percent of total spending, with HDFC Bank achieving the largest month-on-month market share gain in October.
There was a 6.7 percent year-on-year rise in the total number of cards outstanding, adding 0.63 million cards, as per the report.
Transaction volumes experienced a healthy growth of 4.6 percent month-on-month and 19.2 percent year-on-year. This year-on-year growth is below the historical average due to a high base last year.
As growth in transaction volume outstripped expenditure growth, the average spend per transaction fell by 6 percent month-on-month and 11 percent year-on-year. With card issuance on the rise and overall spending stabilizing, the average spending per card decreased by 1.7 percent month-on-month and 0.5 percent year-on-year.
IndusInd Bank faced a significant 36 percent month-on-month drop in average spend per card, attributed to a 34 percent decline in total expenditures.
Among the major banks, HDFC Bank led with 0.14 million new cards issued, followed by SBI (0.13 million), ICICI Bank (0.1 million), and Axis Bank (0.08 million). HDFC Bank also reported the highest year-on-year increase of 1.12 percent.
Point of View
I observe that the recent trends in credit card spending reflect the dynamic nature of consumer behavior, heavily influenced by seasonal festivities and market conditions. Our thorough analysis aims to provide readers with valuable insights into these spending patterns, reinforcing the importance of understanding consumer finance.
NationPress
02/12/2025
Frequently Asked Questions
What was the total credit card spending in October?
Credit card spending in October totaled Rs 2,142 billion.
How much did point-of-sale transactions grow?
Point-of-sale transactions grew by 22 percent month-on-month.
Which bank had the highest market share gain?
HDFC Bank recorded the highest month-on-month spending market share gain in October.
What was the decline in online spending?
Online spending declined by 12.7 percent month-on-month.
How many new cards were issued by HDFC Bank?
HDFC Bank issued 0.14 million new cards in October.
