Credit card trends 2025: Why Indians spent less on apparel and rent, and where they spent more

More than 1 crore credit card transactions worth ₹6400 crore were done in a single day on September 23, 2025, according to RBI data quoted in the latest report by SBI Research. On Diwali (October 21, 2025), the number of credit card transactions crossed the 1.23 crore mark, with their value at around ₹7328 crore.

The above data indicate a significant increase in credit card spending during the festive season this year. As the credit card spending rises, you may wonder where people are spending all that money. SBI Research report has answered this question with the help of a random sample of card transactions across different centres.

"To gauge the spending pattern of the consumers in different sectors and areas, we have utilized a random sample of card transactions dispersed across different centers and the results are discussed in the coming slides," it said.

The report also estimated consumption elasticities for major sectors based on the change in the weighted effective GST rate post GST rationalisation.

Following are some insights on where Indians spent with their credit cards during the festive season:

• Merchant categories like auto, grocery stores, electronics, furnishing, and travel indicated a huge growth in the e-commerce channel

• Loading, railways, and travel agents spending increased due to holidays and travels by consumers due to the festive season.

• Along expected lines, PoS held highest share of ~27% on Fuel, followed by ~17% on Electricals and Electronics and ~16% on Dept Stores & Grocery

• In e-commerce, ~38% spends were on Utility & Services, followed by ~17% on Supermarkets and Grocery

• Travel Agents held ~9% of the total spending during this period

Source: SBI Research

While most sectors witnessed increased spending with credit cards (see table above), credit card spending on apparel and rental payments, as well as airline bookings, declined during the festive season. The fall was sharper in credit card spending for apparel purchases and rental payments. Here are the reasons:

Apparel: The credit card spending on apparel declined by 42% YoY. The report said that the decline in textile consumption may be largely due to the increase in GST on apparel exceeding ₹2,500 to 18% from 12%.

Rental payment: Credit card spending on rental payments declined nearly 74% YoY. While the report does not talk mention the reason behind the fall, it is primarily due to the imposition of an additional charge by credit card issuers for rental payments over the past year.

Credit card companies are now charging 1% to 3% of the rent as processing fees. This has led to a decline in rental payments with credit cards.