Festive Spending Soars: 42% spent over ₹50,000 on credit cards

This Diwali, credit card spending surged, with 42% of users spending over ₹50,000, driven by cashback, rewards, and offers. A Paisabazaar survey of 2,300 respondents revealed 91% planned purchases around card benefits, with home appliances (25%), gadgets (23%), and apparel (22%) topping categories. High-value spending grew, with e-commerce giants Amazon and Flipkart dominating preferences. Strategic shoppers leveraged no-cost EMIs and discounts, emphasizing value and convenience in festive shopping trends.

The Diwali season witnessed an unprecedented surge in festive spending, with a significant shift toward credit card usage for high-value purchases. According to a recent survey by Paisabazaar, over 42% of credit card users spent more than ₹50,000 during the celebrations, while 22% splurged between ₹50,000 and ₹1 lakh, highlighting a growing trend of premium festive expenditures.

Strategic Shopping Drives Festive Spending

The survey, conducted among more than 2,300 participants, revealed a marked change in consumer behavior. A staggering 91% of respondents meticulously planned their Diwali purchases around special credit card offers. In contrast, less than 10% indulged in shopping without waiting for discounts or cashback promotions.

Commenting on this trend, Santosh Agarwal, CEO of Paisabazaar, stated, “The rise in high-ticket spending via credit cards underscores a preference for value-driven shopping. Consumers are timing their purchases to take advantage of festive deals and card-specific rewards.”

Popular Spending Categories

During the festive season, home appliances emerged as the most popular spending category, accounting for 25% of credit card purchases. This was closely followed by mobiles, gadgets, and accessories at 23%, and apparel at 22%. Other significant categories included furniture and décor (18%) and gold and jewellery (12%), reflecting a diverse range of consumer priorities.

High-value spending was another standout trend, with 20% of respondents exceeding the ₹1 lakh mark. The findings point to an increasing willingness among consumers to leverage credit cards for substantial purchases during the festive period.

Cashback and Rewards: The Key Motivators

Credit card rewards and benefits played a pivotal role in driving consumer spending. The survey found that 71% of respondents owned shopping-specific credit cards that offered cashback and rewards. Even among those without such cards, 15% still managed to avail themselves of festive offers, while 14% missed out on shopping-related benefits.

Cashback emerged as the most popular incentive, with 20% of respondents prioritizing it in their credit card usage. Co-branded offers and accelerated reward points followed closely, chosen by 19% and 18% of respondents, respectively.

For those opting for EMI plans, no-cost EMIs were the most favored choice, selected by 56% of respondents. Additionally, 29% opted for EMIs due to added discounts, while 10% used them simply to spread out payments over time. Rohit Chhibbar, Head of Credit Cards at Paisabazaar, remarked, “This year’s data showcases the rise of a strategic, value-conscious shopper who seeks to maximize credit card benefits through cashback, rewards, and EMI-linked discounts.”

E-Commerce: The Shopper’s Preferred Choice

The survey also highlighted the dominance of e-commerce platforms, with 83% of respondents stating that they found the best deals on Amazon and Flipkart. These two giants collectively accounted for 43% of online shopping preferences, followed by Myntra (15%) and Meesho (10%). Other platforms like Ajio, Nykaa, Zepto, and Tata Cliq made up 32% of the total e-commerce preference.

Interestingly, 48% of shoppers adopted a mixed approach, balancing online and offline shopping to enjoy both convenience and in-store experiences. However, physical stores lagged significantly, attracting just 7% of respondents as their primary shopping destination.

A Festive Season of Strategic Spending

The Paisabazaar survey paints a clear picture of evolving consumer habits this Diwali. From planning purchases around lucrative card offers to leveraging EMI options and cashback rewards, Indian shoppers showcased a keen awareness of value and convenience. As e-commerce continues to dominate the retail landscape, credit cards remain an indispensable tool for high-value, strategic festive spending.