India’s credit card spending growth moderated in April 2026 following elevated spending activity during the March fiscal year-end period, even as digital payments and e-commerce transactions continued to support overall consumption trends.
According to a CareEdge Ratings report, aggregate credit card spending rose 7.1% year-on-year to ₹1.98 lakh crore in April 2026. However, spending moderated sequentially after the surge seen in March-end payments and seasonal consumption.
Spending moderates after March-end surge
The report noted that April spending trends reflected gradual normalisation in card utilisation patterns after strong fiscal year-end activity.
CareEdge Ratings said the relatively slower growth compared to 18% growth recorded in the corresponding period last year was due to a higher base effect and moderation in high-ticket discretionary spending.
Per-card spending declined sequentially to ₹16,550 in April 2026 and slipped 1% year-on-year, reflecting moderation in overall utilisation trends.
Private sector banks (PVBs) reported higher per-card spending at ₹16,808, although this was down 6% year-on-year due to slower growth in co-branded cards and cautious expansion in unsecured retail portfolios amid asset quality concerns.
Public sector banks gain market share
Public sector banks (PSBs) continued to strengthen their presence in the credit card segment during April 2026. The report highlighted that PSBs recorded 11.6% year-on-year growth in outstanding card base, outpacing private sector peers, supported by wider distribution networks and increasing digital penetration.
Outstanding credit cards increased to 11.94 crore in April 2026, registering growth of 8.1% year-on-year and 0.7% month-on-month.
PSBs’ share in overall credit card spending rose by 340 basis points year-on-year to 22.1%, while PVBs continued to dominate the segment with a 72.1% market share despite a decline of 370 basis points over the previous year.
The report attributed PSBs’ improving traction to stronger digital adoption, rising usage of RuPay and UPI-linked credit cards, and deeper penetration into tier-2 and tier-3 cities.
E-commerce continues to dominate transactions
Online transactions continued to anchor overall credit card usage in April 2026. E-commerce transactions accounted for 62.4% of total credit card spending during the month, supported by continued digital adoption across food delivery, travel, quick-commerce and subscription-based platforms.
E-commerce spending rose 6.1% year-on-year, although online transactions declined 12.5% sequentially following the March-end spike.
Point-of-sale (POS) transactions also remained resilient, recording 8.8% year-on-year growth amid healthy offline spending across retail stores, dining and travel categories.
PSBs recorded particularly strong growth across digital transactions, with e-commerce transactions rising 34.3% year-on-year and POS transactions increasing 15.8%.
Outlook remains stable
CareEdge Ratings said the near-term outlook for the credit card industry remains stable, supported by expanding merchant acceptance, increasing digital adoption and rising penetration in tier-2 and tier-3 markets.
However, the report cautioned that stress in select unsecured retail segments and evolving asset quality trends remain key monitorables for lenders. Banks are therefore expected to maintain a calibrated approach towards card sourcing, underwriting and credit line expansion.
The report also noted that geopolitical tensions in West Asia and any significant rise in crude oil prices could impact consumer sentiment and discretionary spending trends going forward.