Where Are People Spending The Most Through Credit Cards? RBI Data May Surprise You

Mumbai: Indians increasingly use credit cards online rather than at physical shops, with e-commerce accounting for most spending by value.

Credit card expenditure reached Rs 2.08 lakh crore in July 2026, according to Reserve Bank of India data. It increased from Rs 2.01 lakh crore in June and Rs 1.93 lakh crore in July 2025.

Monthly spending remained above Rs 2 lakh crore for the third consecutive month. Business Standard

Online Payments Take The Lead

Recent channel data show that online purchases account for over 60 percent of credit card spending by value. In May 2026, the online share stood at 62.1 percent, while payments at point-of-sale machines formed the remaining major portion.

Consumers commonly use credit cards online for shopping, flight and hotel bookings, food delivery, utility bills, entertainment and subscriptions.

Physical card swipes remain important, particularly across shops, restaurants, travel outlets and lifestyle businesses. However, cards are increasingly being used for smaller, everyday transactions. CareEdge Ratings

Card Base Expands Rapidly

India had 122.86 million outstanding credit cards in July, up from 121.6 million in June and 111.62 million a year earlier.

Banks added about 1.26 million cards during July. The card base grew nearly 10 percent over the year as lenders expanded access and digital payments became common.

Transaction volumes increased 24.5 percent year-on-year to 605.3 million. This was much faster than the 7.4 percent rise in spending value.

Consequently, the average amount spent per transaction fell nearly 14 percent to around Rs 3,440 from Rs 3,987, showing that people are using cards often for lower-value purchases.

Metros Lead, Smaller Cities Grow

Mumbai, Delhi-NCR and Bengaluru remain leading credit card markets because of their consumer bases, higher incomes and digital adoption.

Tier-2 and Tier-3 cities are expanding as banks widen card issuance, online shopping spreads and merchants accept digital payments.

The figures suggest that Rs 2 lakh crore in monthly credit card spending could become the new normal across India, especially as India enters the festival shopping season.