While a total of Rs 52,000 crore has been spent on purchases, digital wallets have seen credit card users spend Rs 40,000 crore. A whopping Rs 7,850 crore was spent on travel alone, while food and drink saw spending worth 12,500 crore.
October recorded the highest spending for purchases with Rs 7,535 crore spent on credit cards.
The five months between June and October 2021 saw an increase in the adoption of digital payments and wallets as more of them opted for paying rent and tuition by credit. Likewise, credit card spending for online shopping has skyrocketed from January to April and from August to October during the holiday season. Spending on food and utilities remained constant throughout the year, while food and beverages recorded high spending after the lockdown restrictions were eased from July.
Travel: Credit card users in India spent Rs 7,850 crore on travel in 2021, Maldives emerging as top international destination
As travel restrictions eased and India’s vaccination campaign gained momentum, Indians began to travel with vengeance. Credit card travel spending hit a whopping Rs 1,103.11 crore in September, the highest than any other month in 2021. Spending also remained high in October, with CRED members spending Rs 1,091 crore travelling.
May and June saw 24 lakh transactions, amounting to a total of Rs 675 crore. However, in July, travel-related credit card spending hit Rs 602.26 crore.
The Maldives and Dubai, which opened their borders to Indians, were the top international destinations in 2021. In India, the popular destinations were Goa, Coorg, Jaipur, Udaipur, Bangalore and Mumbai.
Well-being and personal care:
In July welfare spending amounted to Rs 31.16 crore, which rose to Rs 43.45 crore in August while September saw the highest spending at Rs 44.96 crore Products like men’s skincare and perfumes have grown in popularity
January to March saw the highest spending on fitness: January recorded spending of Rs 40.80 crore by credit card for fitness spending while February and March saw Rs 38.97 crore and Rs 35 , 4 crore spent respectively.
Suppressed spending on food and drink since July
Online Delivery – From March to May, credit card users spent over Rs 1,000 crore, collectively, on food and drink when pandemic restrictions were tight and online food deliveries were the only alternative to restaurants .
There was a drastic increase from July to October – as restrictions were lifted in various states and people began to venture into restaurants, cafes and bars. August saw spending of Rs 1,750 crore and September saw the highest transactions and payments made on food and drink at Rs 1,727 crore October saw a slight drop to Rs 1,427 crore spent.
The holiday season sees a spike in shopping
The holiday season continued to be a busy time, with a large number of transactions in gifts, clothing, accessories, electronics and more.
October recorded the highest spending for purchases with Rs 7,535 crore. Spending gradually increased as restrictions eased in the country. In July, a credit card spend of Rs 4,758 crore was spent on purchases, while in August, Rs 6,833 was spent. In September, Rs 5,926 crore was spent, compared to a combined total of Rs 7,624 crore in June and May.
Education and rent payments
Members paid tuition, tuition, and college fees with CRED Max. âFrom July (Rs 186.39 crore) to August (Rs 238.97 crore), at the start of the new sessions, credit card spending increased dramatically on education. tuition spending on credit, resulting in high spending in September (Rs 247.71 crore) and October (Rs207.08 crore), âCred said in a statement.
CRED launched its in-app rentpay product through CRED Max in September, which allowed members to put their main rent expense on credit cards. September recorded spending of Rs 5,676 crore on digital payments and wallets. This continued into October with Rs 5,744 crore spent. Prior to that, the maximum spent in this category was in July (Rs 4,018 crore) and June (Rs 3,463 crore).
â2021 can be defined as the year of personal care for CRED members. This is visible through the increase in spending in categories such as travel, shopping and health and wellness, âsaid Kunal Shah, Founder and CEO of Cred India.