85% of credit card users in India shop online during festive season: Survey

According to a survey by Paisabazaar, an online marketplace for consumer credit, 85% of credit card users in India opted for e-commerce platforms for their festive shopping in 2023 to maximise savings. The survey, which included 700 credit card users, revealed that 68% of respondents were salaried, and 76% were under 35. Over 48% of participants exclusively shopped online, while 45% made primarily online purchases with a few in-store buys, and just 7% preferred in-store shopping. The increasing preference for online shopping is attributed to the array of discounts and special offers during festive sales, with 85% of respondents planning their purchases around these online deals, particularly those tied to credit card promotions.

The trend towards online spending has been gaining momentum since earlier in the year. In April 2023, online credit card spending accounted for US$ 11.20 billion (Rs. 94,516 crore), or 60% of total spending. This share grew to 63.4% in July and peaked at 65.3% in September. Datum Intelligence estimates that e-commerce sales in September and October reached approximately US$ 12 billion (Rs. 1,01,271 crore), a 23% increase from the previous year. The survey found that over 80% of credit card users who shopped online during the festive season benefited from card-specific offers, with popular platforms like Amazon and Flipkart seeing significant usage. Among the offers, higher cashback and no-cost EMI options were especially popular, with 68% of respondents opting for EMI facilities and 57% choosing no-cost EMI. Gadgets, clothing, accessories, and home appliances were the most purchased items during the sales.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.