Credit card spending hits 7-month low, average spend per card down to Rs 15,295: Report

ANI April 5, 2025 142 views

The latest ACMIIL report highlights a significant drop in credit card spending in February, with total expenditure falling to Rs 1,672 billion. Despite a 12% year-on-year increase, the growth rate is notably slower compared to previous months, suggesting cautious consumer behavior. Transaction volumes and average spend per card have both declined, potentially reflecting economic uncertainty and seasonal spending patterns. The report indicates a potential slowdown in consumer activity and more conservative financial decision-making among credit card users.

"Monthly Impact Coupled with Industry Slowdown Led to Spending Low of 7 Months" - ACMIIL Report
New Delhi, April 5: Credit card spending hit a 7-month low amid persistent decline, according to a report by ACMIIL, a stock market firm.

Key Points

1

Credit card spending drops 9% month-on-month to Rs 1,672 billion

2

Transaction volumes show mixed trend with slower growth

3

Average spend per card declines to Rs 15,295

4

Consumer behavior indicates cautious spending patterns

According to the report, total credit card spending stood at Rs 1,672 billion in February, compared to Rs 1,841 billion in January. This marks a 9 percent decline on a month-on-month (MoM) basis.

The report said, "Monthly Impact Coupled with Industry Slowdown Led to Spending Low of 7 Months".

Despite the monthly dip, credit card spending still showed a 12 percent increase compared to February 2024. However, this is much lower than the average year-on-year (YoY) growth of around 30 percent seen until January 2024, suggesting a slowdown in consumer activity.

Transaction volumes also showed a mixed trend. While the number of transactions rose 27 percent year over year, they dropped 8 percent compared to January 2025. This is the slowest yearly growth in the past 13 months, indicating that people are using their credit cards less frequently.

The average amount spent per transaction also declined slightly from Rs 4,282 in January to Rs 4,219 in February. The report highlights that customers appear to be spending more cautiously.

One reason could be tax planning, as many people tend to avoid big-ticket or non-essential purchases during this time of the year. February also lacks major festivals or spending triggers, which usually boost consumption.

Spending per card also dropped. The average spend per credit card in February was Rs 15,295, down from Rs 16,911 in January. This is a 9.6 percent decline on a Month-on-Month basis.

According to ACMIIL, the overall slowdown in card spending and the shrinking average ticket size per transaction indicate cautious consumer behaviour. The report also points out that the pace of new card issuance has slowed, further contributing to the weaker growth numbers.

In summary, February saw muted consumer activity, both in terms of transaction numbers and value, reflecting broader economic caution and seasonal spending patterns.

Reader Comments

R
Rahul K.
Not surprised by this at all. With inflation still high, people are being more careful with their spending. My own credit card bills have gone down as I'm cutting back on unnecessary purchases. Smart move by consumers!
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Priya M.
Interesting data! I wonder how much of this is seasonal vs actual economic caution. February is typically a slow month after the holiday spending spree. Would love to see March numbers for comparison 🤔
A
Amit S.
The article mentions tax planning as a factor - that's definitely true in my case! I always hold off on big purchases until after March to keep my tax documents simpler. Anyone else do this?
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Sanjana T.
While the data is interesting, I think the article could have included more regional breakdowns. Credit card usage patterns vary widely across cities - metro vs non-metro spending habits would be insightful!
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Vikram P.
I've actually increased my credit card spending but shifted it all to essentials like groceries and fuel. The rewards points add up! Maybe others are doing the same - spending smarter rather than spending less? 💳
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Neha R.
The 9% monthly drop is significant! I work in retail and we definitely noticed slower sales in February. Customers seem to be waiting for discounts and sales before making purchases these days.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Credit Card Spending ACMIIL Report Indian Economy Consumer Spending Financial Trends
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