The pace of credit card purchases and payments in India has suffered a shock in September 2026. Total spending on credit cards in the country fell by 5.9% year-on-year to Rs. 2.04 lakh crores. This is the first time since February 2021 that credit card spending has declined year over year. This decline does not mean that Indians have suddenly stopped shopping. The reasons behind this are last year’s strong base, shift of festive shopping to October this year and reduced online spending. Interestingly, despite the reduction in spending, the number of credit cards in the country continues to grow. Let’s understand why credit card spending fell, which banks were most affected and what the picture could be in the coming months.
How much did credit card spending drop in September?
According to a report by Business Standard, the total credit card spending in September 2026 was Rs 2.04 lakh crore. In September 2025, this figure was around 2.17 lakh crore rupees. Thus, it has decreased by 5.9% year-on-year. Earlier in February 2021, credit card spending fell during the Corona pandemic. The main reason for the decline this time is the high base of last year. The cut in GST rates in September 2025 and the early start of online sales for the festive season led to a sharp spurt in credit card purchases. This year the festive sale started in October. So the September figures did not show the same buying as last year.
Biggest drop in online shopping
Looking at credit card spending data, online shopping has seen the biggest push. In September 2026, online credit card spending declined by 12.5 percent year-on-year to Rs. 1.26 lakh crores. In September 2025, it was Rs 1.44 lakh crore. Conversely, card payments increased in shops and showrooms. If we look at the figures, credit in shops and showrooms has led to an increase in expenditure of 7.18%. This shows that the decline in credit card spending has mainly occurred in the online segment.
What happened in September last year?
In September 2025, the GST Council revised the tax rates on several goods and services. Along with this, the online sale of the festive season also started in the last week of September. This impacted purchases and credit card spending in September 2025 increased by 13.3% compared to August to around Rs. 2.17 lakh crores. At the same time, major festival sales started in October this year. This means that a large part of the purchases made in September last year are expected to take place in October this time. For this reason, the decline is more visible when we compare September 2026 with last year’s strong figures.
What is the credit card spending status of HDFC, SBI and ICICI Bank?
It is clear from these figures that HDFC Bank has outperformed other major card issuers. At the same time, ICICI Bank and SBI card charges have come down drastically. HDFC Bank is the largest credit card issuer in the country, while SBI Card is the largest independent credit card issuer.
Spending decreased, but why the number of credit cards increased?
In September 2026, the total number of credit cards in the country increased to 12.53 crore. There was an increase of about 10.5% year-on-year. Banks also issued a large number of new credit cards in September. HDFC Bank has added more than 2.80 lakh new cards. While SBI Card made about 2.08 new customers. Axis Bank has added about 2.60 lakh cards. ICICI Bank has issued around 29,621 new cards. The pace of new credit card additions in September was the fastest since November 2024. This means that the number of consumers using credit cards in the country is increasing, but the cost per card has decreased.
Are consumers now paying more for less?
Another important change has emerged from credit card transaction data. The number of credit card transactions rose 23.2% year-on-year to nearly 61 crore in September. But the average transaction value fell by 23.6% to Rs. 3,343 has happened. That means consumers are using credit cards more often than ever, but the amount spent each time is decreasing. One of the reasons behind this is the growing trend of using credit cards through UPI for small payments. Additionally, compared to last year, this time online orders for major festivals are expected to take place in October instead of September.
Costs are expected to rise in October and November
Experts say that October and November may see an improvement in credit card spending. According to estimates by CareEdge Ratings, credit card spending in October rose to Rs. 2.28 lakh crore to Rs. 2.38 lakh crore can be done. Diwali and other festive shopping can play an important role in this. Expenses related to smartphones, electronics, clothing, household goods and travel are likely to increase. However, rising prices of products and recent rise in interest rates may affect consumer purchases.
