New Delhi: Credit card spending in India recorded a 6 per cent year-on-year (YoY) growth in February 2026, reflecting continued expansion in digital payments. However, on a month-on-month (MoM) basis, spending declined sharply by 11 per cent to ₹1,772 billion, indicating a slowdown in consumption momentum.
According to a report by Asit C. Mehta Investment Intermediates Limited, the moderation was largely driven by the top four banks, which together account for nearly 76 per cent of total industry spending—highlighting their significant influence on overall trends.
Despite softer spending, credit card issuance remained strong. Around 1.05 million new cards were added during the month, marking a 7.7 per cent YoY increase and a 23-month high. This pushed the total number of outstanding cards to approximately 118 million, signalling steady growth in the credit card ecosystem.
Transaction volumes also saw a monthly dip of 8.5 per cent to 491 million. However, on a yearly basis, volumes remained robust with a 23.9 per cent increase, suggesting that while spending per transaction may have reduced, overall usage remains healthy.
The report noted that February is typically a slower month for card usage, but the sharper-than-expected decline points to underlying weakness in short-term consumption trends. At the same time, the divergence between strong card issuance and weaker spending indicates that banks are currently prioritising customer acquisition over immediate usage, which could support future growth.
Average spending per card dropped to ₹15,056, down 11.7 per cent MoM and 1.6 per cent YoY, reflecting both softer consumption and the impact of a rapidly expanding card base.
Among major players, State Bank of India stood out with a strong 30.3 per cent YoY growth in spending. In contrast, other leading banks saw a moderation in growth compared to previous years.
The industry remains highly concentrated, with the top 10 banks accounting for about 93 per cent of total credit card spending, underlining the dominance of a few key players in the market.
With inputs from IANS