India’s credit card spending crossed nearly ₹2 lakh crore in April 2026, but beneath the headline numbers, the industry is showing clear signs of a slowdown. A new report by Asit C. Mehta Investment Intermediates shows that while Indians continue swiping cards more frequently than ever before, average spending per card and transaction values are falling.
This indicates a shift toward smaller-ticket, everyday spending rather than big discretionary purchases. At the same time, the battle for market share is intensifying, with SBI Cards, Federal Bank and IDFC FIRST Bank emerging as the biggest gainers while some large private banks lose momentum.
According to the report, total credit card spends stood at ₹1.97 lakh crore in April, up 7.1% year-on-year but down 10.1% compared to March. The monthly decline was partly expected because March typically sees elevated spending linked to financial year-end payments, travel, taxes and business expenses. However, the relatively modest annual growth rate indicates that the explosive post-pandemic credit card boom may now be normalising.
Average spend per card fell 10.7% month-on-month and remained broadly flat year-on-year at ₹16,512, while average transaction value dropped 13.5% annually to ₹3,546. The data suggests Indians are increasingly using credit cards for routine purchases such as food delivery, quick commerce, subscriptions and online shopping rather than only for travel, luxury shopping or large-ticket expenses.
Even as spending growth slowed, transaction activity remained strong. The industry processed around 556 million transactions during April, a 23.8% increase from a year earlier. That divergence between transaction growth and spending growth indicates consumers are swiping cards far more often but for smaller purchases each time.
While HDFC Bank continues to dominate overall spending share, SBI Cards emerged as the biggest outperformer in April with 29% year-on-year growth in spends and the largest market share gains. The report attributes much of this rise to higher corporate spending.
Meanwhile, smaller banks are becoming increasingly aggressive in expanding their card businesses. Federal Bank posted 51% growth in spends and a massive 133% rise in transaction volumes, largely driven by rapid card issuance. IDFC FIRST Bank also continued gaining share steadily across cards, spends and transaction growth.
In contrast, some large private banks appear to be losing momentum. ICICI Bank reportedly saw card spends decline 7% year-on-year, while Axis Bank recorded only 4% growth, well below industry averages. The report noted that the top four issuers collectively lost 77 basis points of spending market share sequentially.
India now has nearly 119 million credit cards in force, with the industry adding 0.8 million new cards in April alone. Even though issuance slowed sequentially, annual growth in cards outstanding reached 8.15%, the strongest seen in 14 months.
India Credit Card Industry Snapshot: April 2026
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Total credit card spends stood at ₹1.97 lakh crore in April 2026, up 7.1% year-on-year but down 10.1% month-on-month. -
India now has 119 million credit cards in force, with banks adding 0.8 million new cards during April. -
Annual growth in cards outstanding reached 8.2%, the strongest in 14 months. -
Transaction volumes rose sharply by 23.8% year-on-year to 556 million transactions, showing rising everyday usage of credit cards. -
Average spend per card fell 10.7% month-on-month and 1% year-on-year to ₹16,512. -
Average transaction value declined 13.5% year-on-year to ₹3,546, indicating consumers are making more small-ticket transactions. -
HDFC Bank remained the market leader with 29.5% share of total spends. -
SBI Cards held 19.2% spend market share and emerged as the strongest performer with 29% year-on-year growth in spends and the highest market share gain of 327 basis points. -
ICICI Bank accounted for 16.5% spend market share but saw spends decline 7% year-on-year -
Axis Bank recorded only 4% growth in spends, lagging industry growth rates. -
The top four issuers — HDFC, SBI, ICICI and Axis — collectively lost 77 basis points of spending market share sequentially. -
Federal Bank posted 51% growth in spends and 133% growth in transaction volumes, driven by aggressive card issuance. -
IDFC FIRST Bank maintained strong momentum with 24% growth in spends and 36.4% growth in transaction volumes. -
ICICI added the highest number of new cards during April at 0.15 million cards. -
Federal Bank added 0.1 million cards, up 91% year-on-year, while IDFC FIRST added 0.08 million cards, up 27.5% annually. -
The data suggests India’s credit card market is becoming more mass-market and transaction-driven, with consumers increasingly using cards for smaller everyday purchases rather than only large-ticket spending.
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