1. Surge in Credit-Based Payments:
Festive sales saw a 35-50% rise in credit card and credit-based payment options like EMI and pay-later products. Credit card transactions alone increased by 53% compared to last year.
2. Rise in UPI Transactions:
UPI remains the dominant payment method with a 34% increase, processing over 500 million daily payments.
3. No-Cost EMI and EMI Trends:
Platforms like Amazon Pay reported 80% of EMI transactions as no-cost, with popular purchases including video games like PlayStation 5.
4. Sector-Specific Growth:
Credit card usage surged 62% in electronics and 11% in fashion and lifestyle categories during the Navratri season.
5. Factors Driving Credit Card Usage:
The absence of debit card EMI options prompted many consumers to switch to credit cards. Banks also converted debit cardholders with major credit lines into credit card customers.
6. UPI Dominates Overall:
Despite the rise in credit-based payments, UPI continues to lead as the top payment method across platforms.
This trend highlights the growing shift towards digital and credit-based payments during peak shopping periods, making credit cards and pay-later instruments essential tools for festive shoppers.