Credit card spending rises 2.6% in May; June seen stable at Rs 2.0-2.1 trillion: Report
New Delhi, July 1
Credit card spending in India rose 2.6 per cent month-on-month to in May 2026 and is expected to remain in the range of Rs 2.0 trillion-2.1 trillion in June, according to a report by Equirus Securities.
The report noted credit card spending increased by 2.6 per cent month-on-month in May 2026 to Rs 2.02 trillion. It further highlighted continued strength in digital payment adoption, with overall digital payments to merchants rising around 21 per cent year-on-year to Rs 11.3 trillion in May.
Also, UPI person-to-merchant (P2M) spending rose 25.2 per cent year-on-year in May 2026, while credit card spending increased 6.6 per cent. "UPI P2M/credit card transactions increased 25.2%/6.6% yoy to Rs 8.7trn/Rs 2.02trn," it said.
It further noted that UPI person-to-merchant transactions continued to dominate merchant digital payments, accounting for 77.1 per cent of the total in May 2026, marking an increase of 286 basis points compared with the same period a year earlier. In contrast, the share of credit card spending in overall merchant digital payments stood at 17.9 per cent, reflecting a decline of 235 basis points year-on-year.
Apart from this, the number of credit cards in force (CIF) increased by 1.018 million during the month, taking the total outstanding card base to 120.5 million. Top four credit card issuers saw their combined share of cards in force declining by around 14 basis points month-on-month in May 2026, while their share of total credit card spending fell by about 31 basis points, the report said.
Additionally, e-commerce accounted for 62.4 per cent of total credit card spending in May 2026, largely unchanged from 62.6 per cent in the previous month.
Average monthly spending per credit card stood at around Rs 10,500 for e-commerce transactions and Rs 6,300 for point-of-sale (POS) purchases. However, the average e-commerce transaction value was higher at about Rs 4,300, compared with around Rs 2,600 for POS transactions.
Overall, as per the Reserve Bank of India's daily payment statistics, credit card spending in June 2026 is expected to remain broadly stable and is likely to be in the range of around Rs 2.0 trillion to Rs 2.1 trillion, the report added. "Based on RBI's daily data on payment statistics, we expect Jun'26 credit card spends at ~Rs 2.0-2.1 trn," it said.
— ANI
Reader Comments
Interesting data! The decline in credit card's share of merchant payments despite rising volumes shows how quickly Indians are adopting UPI. As an expat living in Mumbai, I'm amazed at how even street vendors now take UPI payments. The convenience is unbeatable.
The numbers are impressive but we also need to talk about credit card debt. Average spending of Rs 10,500 per card on e-commerce is good for economy but hope people aren't overspending. Responsible usage is key! 😊
Happy to see digital payments growing robustly! The 25% YoY growth in UPI P2M is remarkable. But why are top credit card issuers losing market share? Maybe smaller players are offering better rewards? Would love to see more analysis on that.
Respectfully, this data is for May but June seems uncertain with monsoon season and inflation concerns. Rs 2.0-2.1 trillion is a wide range. I hope the lower end is conservative because many middle-class families are cutting back on discretionary spending these days.
As someone working in fintech, this report confirms what we see on ground. Digital payments are here to stay. The 120.5 million credit card base is still relatively small compared to India's population, meaning huge growth potential. Exciting times ahead! 🔥
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