Credit card spending in February sees a 9 per cent decline on a month-on-month basis compared to January
Credit card spending hit a 7-month low amid persistent decline, according to a report by ACMIIL, a stock market firm.
According to the report, total credit card spending stood at ₹16.72 lakh crore in February, compared to ₹18.41 lakh crore in January. This marks a 9 per cent decline on a month-on-month (MoM) basis.
The report said, “Monthly impact coupled with industry slowdown led to spending low of seven months”.
Despite the monthly dip, credit card spending still showed a 12 per cent increase compared to February 2024. However, this is much lower than the average year-on-year (YoY) growth of around 30 per cent seen until January 2024, suggesting a slowdown in consumer activity.
Transaction volumes also showed a mixed trend. While the number of transactions rose 27 per cent year over year, they dropped 8 per cent 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 ₹4,282 in January to ₹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 ₹15,295, down from ₹16,911 in January. This is a 9.6 per cent 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.
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Published on April 5, 2025
