Credit Card Spending Growth Nearly Flat in August
India's credit card spending growth eased in August amid rising competition, with HSBC estimating 5.9% growth even as UPI transactions surged 19% YoY.
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“Credit Card Spending Growth Nearly Flat in August”
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25 Sep 2026
Key Highlights:
- Credit card spending growth eased in August, with HSBC estimating 5.9% YoY growth and Jefferies putting it at 5.5%, down from 7.1% in July.
- Card additions rose 10.3% YoY, slightly up from July, though net additions dipped to around 1.2 million from 1.3 million.
- Smaller issuers gained market share while larger issuers lost ground.
- Total merchant network spending, including cards and UPI P2M, rose around 19% YoY to Rs 11.3 trillion.
- The new UPI MDR framework, effective October 15, is expected to offer only limited competitive relief to credit cards given the far lower 0.4% rate.
Spending Growth Loses Momentum
India's credit card industry's spending growth eased in the month of August, even as card additions remained relatively steady, rising 10.3 per cent year-on-year, up slightly from 10.1 per cent in July.
Key Challenges Flagged by Analysts
HSBC and Jefferies flagged muted spending momentum, intensifying competition and pressure on profitability as key challenges for the sector, according to reports, painting a picture of an industry facing structural headwinds even as the overall card base continues to grow.
A Modest Slowdown in New Additions
Net additions stood at around 1.2 million for the month, slightly lower than the 1.3 million added in July, while smaller issuers gained market share, as larger issuers lost ground, suggesting a shifting competitive landscape within the industry itself.
