Credit cards played a central role in India’s Diwali shopping spree this year, as consumers opted for more strategic and higher-value purchases. A recent survey conducted by Paisabazaar revealed that 42% of credit card users splurged over Rs 50,000 during the festive season. Among them, 22% spent between Rs 50,000 and Rs 1 lakh, while another 20% exceeded the Rs 1 lakh mark, indicating a rising trend of using credit cards for substantial buys.
The top categories where consumers directed their spending included home appliances (25%), mobiles and gadgets (23%), and apparel (22%), followed by furniture and decor (18%). Gold and jewellery accounted for approximately 12% of the total festive credit card expenditures.
Santosh Agarwal, CEO of Paisabazaar, noted, “The increase in high-value festive purchases through credit cards demonstrates a growing preference for convenience and value among consumers. They are utilizing credit cards more strategically, aligning their major purchases with festive promotions and card-specific perks.”
The survey findings indicated that 91% of credit card users strategically planned their purchases around card promotions, with less than 10% making impulsive buys without waiting for festive discounts. Cashback emerged as the most sought-after reward, selected by 20% of respondents, followed by co-branded offers (19%) and accelerated reward points (18%).
When it came to opting for Equated Monthly Installments (EMIs), the survey revealed that No-Cost EMI was the most favored choice, preferred by 56% of respondents. Approximately 29% were swayed by better discounts, while 10% utilized EMIs to manage their payments effectively.
Nearly half of the survey participants (48%) indicated a preference for a mix of online and offline shopping, signaling a shift towards a more diversified shopping approach during the festive season. Rohit Chhibbar, Head of Credit Cards at Paisabazaar, commented, “This year’s survey highlights the emergence of strategic and value-conscious consumers. Cashback, rewards, no-cost EMI, and merchant discounts continue to position credit cards as an integral part of festive shopping.”
E-commerce platforms emerged as the preferred shopping destinations, with 83% of respondents finding the best deals on Amazon and Flipkart. Myntra and Meesho followed at 15% and 10% respectively, while Ajio, Nykaa, Zepto, and Tata Cliq collectively captured 32% of consumer preferences.