The five-day Diwali period in 2023 witnessed a substantial 18% surge in credit card expenditures, according to Visa’s payment data analysis. This surge not only reflects the festive spirit but also sheds light on evolving consumer preferences, as revealed by a notable 25% increase in transaction volumes on e-commerce platforms. Visa’s comprehensive data analysis highlights the dynamics of both online and in-store transactions during Diwali 2023.
Visa’s data underscores the dominance of e-commerce platforms during the festive season, with a 30% month-on-month increase in transactions, reaching ₹1.2 lakh crore. The surge was not confined to specific banks, with SBI credit card spending leading the pack with an impressive 42% month-on-month increase. ICICI Bank and Axis Bank closely followed, registering approximately 35% growth, while HDFC Bank showed a commendable 17% increase.
Contrary to the digital surge, face-to-face transactions also experienced a robust growth of 12% during Diwali 2023. Jewellery stores, electronic outlets, and grocery stores/supermarkets dominated in-store commerce, showcasing the diverse spending patterns of consumers during the festive season, reported CNBC.
Visa’s analysis further revealed distinct category preferences in both online and in-store transactions. In-store commerce during Diwali was marked by substantial spending in jewellery stores, electronic outlets, and grocery stores/supermarkets. Meanwhile, online transactions underscored the prominence of apparel, accessories, and discount store merchandise, painting a comprehensive picture of consumer behaviour during the festive season.
October-end saw a surge in the total number of credit cards in circulation, reaching 9.47 million. Key contributors to this surge were ICICI Bank, HDFC Bank, Axis Bank, and SBI, collectively adding over 755,000 cards to the market.
Diwali 2023 showcased a dynamic shift in consumer spending patterns, with a surge in both online and in-store transactions. While e-commerce platforms witnessed unprecedented growth, traditional in-store commerce also flourished. The credit card landscape continues to evolve, with the RBI’s recent regulatory changes adding a layer of complexity. As the festive season concludes, the financial industry will be keenly observing how these trends shape the future of consumer spending and credit card usage.
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