India’s Credit Card Spending Crosses ₹23.62 Trillion in FY26 as Digital Transactions Boom

India’s credit card spends rose above ₹23.62 trillion in FY26, according to data released by SBI Cards and Payment Services Limited.  

The country had nearly 118.6 million credit cards in circulation during the financial year, as digital payment usage continued to increase across urban and smaller markets. 

SBI Card reported retail spends of over ₹3.54 trillion in FY26, registering a 15% year-on-year increase.  

Online transactions contributed nearly 62.5% of retail spends, indicating higher use of cards for digital purchases across both essential and discretionary categories. 

Tier 2 And Tier 3 Cities Drive Growth 

The report showed rising adoption of credit cards in Tier 2 and Tier 3 cities. According to SBI Card, around 77% of UPI-active credit card customers came from smaller cities, while nearly 81% of UPI-linked credit card spends were generated from these locations. 

The company said wider digital access and the integration of RuPay credit cards with UPI have contributed to this increase.  

Customers are increasingly using credit cards for smaller-value daily transactions, including grocery purchases, utility bill payments, and fuel expenses. 

UPI-Linked Transactions Increase 

Spending through UPI-linked credit cards recorded more than 10% quarter-on-quarter growth in Q4 FY26, SBI Card said. Categories including groceries, departmental stores, restaurants, apparel, fuel, and utilities saw higher transaction volumes during the period. 

The report noted that UPI has become a regular payment mode for everyday spending, with linked credit cards increasingly being used alongside bank accounts for routine transactions. 

EMI Spending Records Double-Digit Growth 

EMI-based spending also recorded double-digit growth in FY26 compared to the previous year. SBI Card said demand for instalment-based payments remained strong for purchases such as consumer durables, electronics, and gadgets. 

The company added that EMI transactions are expanding beyond metro cities, indicative of wider access to formal credit. It also observed growing use of multiple credit cards by customers for different categories including travel, fuel, lifestyle, and digital spending. 

Read More: RBI Proposes Stricter Basel Pillar 3 Disclosures on Capital and Risk for Banks! 

Conclusion 

The FY26 data indicated growth in credit card usage, supported by digital payments, UPI-linked transactions, and higher spending activity in smaller cities. 

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