Outlook Money
India’s credit card usage is evolving rapidly, driven by rising incomes, digital payments growth, and a shift toward convenience, rewards, and flexible spending behaviour nationwide.
According to SBI Card FY'26 data, India has over 118 million credit cards in circulation, with annual spending crossing Rs 23.62 trillion across metros and smaller cities.
Consumers now use credit cards for groceries, travel, fuel, electronics, and online shopping, valuing rewards, EMIs, and better control over monthly personal finance management.
UPI-linked credit cards are gaining traction, enabling seamless small-value transactions and increasing everyday usage across urban and semi-urban markets for greater payment flexibility.
Tier 2 and Tier 3 cities are driving new credit card growth, supported by higher digital literacy, rising incomes, and expanding payment acceptance infrastructure nationwide.
Credit card EMIs are rising as consumers opt for affordable monthly payments on electronics and gadgets, making large purchases more manageable and financially accessible.
According to the report, over 60 per cent of credit card retail spending is now online, reflecting a strong shift toward digital-first consumption and mobile payments in India.
Credit cards are becoming central to India’s financial lifestyle, combining rewards, UPI integration, EMIs, and digital adoption for smarter, flexible everyday spending habits.