-SBI
Card insights highlight strong growth in online transactions, and UPI-linked usage
-Multi-Card
usage and EMI offerings are driving lifestyle and high-value transactions
New
Delhi: India’s consumption landscape is evolving
rapidly, with spending patterns increasingly reflecting aspirational lifestyle,
digital-first transactions, and greater adoption of flexible payment options. Over
the past decade, rising incomes, expanding urbanisation, and an increasingly
aspirational middle class, have reshaped how and where people spend. With around
118.6 million credit cards in circulation and over ₹23.62 trillion credit card spends during
FY’26,
the ecosystem is witnessing a clear shift from expansion to utilisation.
Insights
from SBI Card, India’s largest
pure-play credit card player, indicates that credit card customers are
spending more on experiences and lifestyle categories alongside necessities, while also increasingly leveraging digital platforms.
Evolving
Customer Behaviour
Supported by rising incomes and exposure, spending
behaviour of Indian customers is becoming increasingly aspirational, and
experience-driven, highlighting a shift towards customer’s capacity for
discretionary expenditure. SBI Card’s FY’26 data indicates that retail spends
reached the highest ever level of over ₹3.54 trillion, with a 15% growth YoY. Online
spends contributed nearly 62.5% in retail spends, reflecting the growing
inclination for digital-first consumption across both non-discretionary and
discretionary categories.
Hyper-personalised, seamless experiences, and
self-service-led digital platforms are becoming integral to driving deeper
customer engagement and convenience. As per SBI Card, millions of customers are
frequently leveraging SBI Card’s digital platforms such SBI Card mobile app,
Live Chat integrated Ask ILA chatbot, WhatsApp Service, for their varied needs,
from applying for a new card to query resolution. Today, SBI Card mobile app
enjoys a strong 4.6 and 4.5 rating on google play and app store, respectively, owing
to its focus on enhanced customer experience.
Commenting
on the evolving credit card ecosystem in India, Salila Pande, MD & CEO,
SBI Card, said, “Rising income and aspirations, progressive policies, digitisation,
and growing payments infrastructure, is reshaping credit card transactions. Customers
are increasingly gravitating towards experiences, lifestyle-driven purchases,
and seamless everyday transactions, reflecting a more confident and evolving
mindset. At SBI Card, we remain focussed on further strengthening our product
portfolio through meaningful partnerships and innovation, to address these evolving
needs, while contributing to India’s thriving digital payments landscape.”
UPI
on Credit Cards Accelerates Everyday Usage
India’s digital payment ecosystem has evolved
rapidly with UPI emerging as the backbone of everyday transactions. A notable
evolution within this ecosystem is the growing adoption of UPI-linked credit
cards, which is expanding its role within everyday transactions. As per SBI
Card’s Q4 FY’26 data, UPI-linked credit cards spends grew by over 10% QoQ, led
by segments such as departmental stores & groceries, utilities, fuel,
apparel, and restaurants – indicating growing customer comfort and confidence.
Credit Card Adoption Expands To Tier 2+ Cites
Credit card adoption is gradually expanding
beyond metropolitan markets with rising incomes, improving digital awareness,
and expanding payments infrastructure. The integration of RuPay credit cards
with UPI is further accelerating this trend by enabling customers in smaller
cities to use credit seamlessly, even for their everyday spends, including
small-ticket purchases.
SBI Card’s data indicates that around 77% of
UPI-active credit card customers, and nearly 81% UPI-credit spends originate
from Tier 2 and Tier 3 cities, highlighting strong adoption of digital credit
in emerging markets, and reinforcing the role of credit card in supporting
financial inclusion.
Growing Affinity towards Muti-Card Usage
Customers are increasingly adopting a
preference for using multiple credit cards to cater to various spending
requirements, for instance, SBI Card MILES for travel, SBI Card PULSE for
wellness, BPCL SBI Card for fuel, Flipkart SBI Card for lifestyle spends,
PhonePe for digital transactions, etc.
The rising adoption of such credit cards
among digitally savvy customers reflects a growing inclination towards
category-specific benefits, personalised rewards, and ecosystem-led value
propositions. This trend highlights the evolution of customer behaviour towards
more experience-driven card usage across shopping, travel, lifestyle, and
everyday spending categories.
EMI’s Driving Spending Through Credit Cards
As per SBI Card FY’26 data, EMI spends
witnessed a healthy double digit YoY growth. Customers are increasingly opting
for EMI-based transactions as it makes purchase of gadgets, consumer durables,
etc. affordable and convenient. The trend of spreading payments in instalments
for high value purchases is also extending beyond metros in Tier 2+ cities,
reflecting deeper credit penetration and evolving spending patterns.
To address this growing demand, companies
such as SBI Card are focussing on partnering with leading brands to roll-out
offers, and flexible payment options across multiple categories including smartphones,
consumer durables, gadgets, furnishing, among others.