According to Visa‘s payment data analysis, there was a 25% increase in credit card spending on e-commerce platforms during the Diwali 2023 period compared to the previous year. Simultaneously, overall credit card expenditures experienced a growth of around 18%. The substantial rise in e-commerce transactions indicates a change in consumer shopping patterns, reported TOI.
“The significant surge in spending signifies a robust economic outlook and a thriving consumer market,” Visa said.
Debit card use went down because people are now using UPI more. However, Visa pointed out that credit card spending went up by 18% during Diwali. This shows that credit cards are becoming more popular for festive shopping in India. According to NPCI data, there were 187 crore UPI transactions during the five Diwali days, totaling almost Rs 2.7 lakh crore.
On the contrary, in-store spending using credit cards during the festival days showed a year-on-year growth of only 12%, less than half of the 25% growth rate observed in online credit card transactions.
While the payment company didn’t reveal the specific transaction amounts, banks predict that credit card expenditures in November will be roughly Rs 2.3 lakh crore, with about 25% of the spending concentrated around Diwali. Banks expect online transactions to be twice as much as physical transactions, mirroring the trend seen in October, where e-commerce giants led to Rs 1,20,794 crore in online credit card transactions, surpassing the Rs 57,774 crore spent in brick-and-mortar stores.
During Diwali 2023, jewellery stores, electronic stores, and grocery stores/supermarkets emerged as the top categories for in-store commerce. This underscores the enduring significance of physical retail spaces, particularly for products such as jewellery and electronics.
In the realm of online transactions, there was a preference for clothing and accessories as well as discounted store items, showcasing a trend of consumers increasingly choosing to buy clothes online.
(With TOI inputs)