India Credit Card Use Surges 24%, Average Spend Drops
By ThePip Desk
Indian credit card transactions hit 601 million in July, a 24.1% rise. However, average spend decreased 13.5% to ₹3,460, influenced by UPI-linked RuPay cards.
India’s credit card transactions surged by 24.1% year-on-year to 601 million in July, but the average transaction value simultaneously fell by 13.5% to ₹3,460. This distinct trend indicates a shift towards more frequent, smaller-value payments across the nation.
The overall spending increased by only 7.4%, reaching ₹2.08 lakh crore, according to the Monthly Credit Card Insights: July 2026 report from Asit C. Mehta Investment Interrmediates Ltd (ACMIIL). This report, which draws on Reserve Bank of India data, highlights a growing preference for smaller payments.
Key Transaction Metrics: July
- Total Transactions: 601 million (+24.1% YoY)
- Total Spending: ₹2.08 lakh crore (+7.4% YoY)
- Average Transaction Value: ₹3,460 (-13.5% YoY)
- Average Monthly Spend Per Card (Industry): ₹16,812 (-2.4% YoY)
UPI Integration Fuels Micro-Transactions
A primary driver for this trend is the increased adoption of RuPay credit cards for transactions via the UPI network. These cards allow users to make payments at merchants without physical swiping, contributing to higher transaction volumes.
ACMIIL clarified that the 24.1% rise in transactions should not be solely attributed to UPI-linked payments, despite their growing influence. The convenience of UPI integration plays a significant role in altering consumer behavior.
Punjab National Bank’s UPI-Driven Growth
Punjab National Bank (PNB) provides a specific illustration of this phenomenon, recording 5.2 million credit card transactions in July. This represented an 8.9% month-on-month increase, following a significant six-fold surge observed in June.
ACMIIL attributed this growth to PNB’s collaboration with Kiwi for UPI-based credit card payments. PNB also saw substantial growth in credit card spending, up 173% year-on-year and 8.6% month-on-month in July, though it remains a minor player in the broader credit card market.
Industry-Wide Spending Shifts
Beyond individual transaction values, the average monthly expenditure per credit card across the industry declined by 2.4% year-on-year to ₹16,812 in July. This occurred despite a 2.2% increase from June, indicating a broader shift in consumer behavior.
Among major card issuers, HDFC Bank reported the highest average monthly spend per card at ₹22,322. SBI followed with ₹17,392, and ICICI Bank with ₹17,278, reflecting varied performances within the changing landscape.
The July data collectively points to a definitive shift in consumer preference towards more frequent, smaller credit card transactions, significantly influenced by the convenience and accessibility offered by UPI integration.