Cred users paid Rs 52,000 crore with credit cards for shopping in 2021 : Tech News

Mumbai: Cred users spent a total of Rs 52,000 crore through credit cards on shopping in 2021, with the festive season clocking the highest expenditure, according to a report put out by the credit cards-focused fintech platform.

October recorded the highest expenditure on shopping, with Rs 7,535 crore being spent, the report titled Cred Insights stated.

“Another interesting trend on shopping emerged after the restrictions were eased. The spending increased gradually—July (Rs 4,758 crore), August (Rs 6,833 crore) and September (Rs 5,926 crore) compared to a combined Rs 7,624 crore in June and May.”

Apart from shopping, digital payments and mobile wallets were the top categories for Indian credit card holders.

• June-October 2021 saw an increase in adoption of digital payments and wallets as more individuals opted for paying rent and education fees via credit.
• Similarly, credit card spending on e-commerce shopping soared during January to April, and August to October during the festive season.
• Expenditure on food and utility bills remained consistent, but spending on food and beverages spiked after lockdown restrictions were eased in the latter half of the year.

Spending on travel, a segment battered by the pandemic, witnessed a revival around the festive season.

Credit card expenditure on travel stood at Rs 1,103.11 crore in September—higher than any month in 2021. In October, that figure was Rs 1,091 crore. In comparison, Cred users spent a total of Rs 675 crore in the months of May and June, but an uptick was seen in July—to Rs 602.26 crore—as restrictions were eased in the aftermath of the second wave of the pandemic.

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