India's Credit Card Base Soars, But Spending Cools Amid 'High Base' Effect

India's credit card market continues its strong expansion, with the total number of cards-in-force hitting 123.8 million in September 2026, a healthy 9.5 percent increase year-on-year. This robust growth, however, stands in contrast to a noticeable slowdown in overall credit card spending, which actually dipped by 6.2 percent compared to the same month last year, according to a recent report by brokerage firm Jefferies. The moderation in spending largely stems from an 'elevated base' effect, a statistical quirk reflecting unusually high spending in September 2025 due to post-GST activity and an earlier festive season. This trend highlights a fascinating dynamic in India's booming digital payments ecosystem, where credit cards are growing in number but facing headwinds in transaction value against a strong comparative period. While the credit card base expanded, retail digital transactions overall, excluding NEFT, surged 16.4 percent year-on-year to reach Rs 44 trillion, indicating that other digital payment methods like UPI are capturing a larger share of consumer spending. Major issuers like HDFC Bank and ICICI Bank saw strong card growth, while SBI Cards experienced a sharper 14 percent decline in spending. Looking ahead, market watchers will be keen to see if credit card spending regains momentum as the base effect normalizes and the current festive season spending ramps up in the coming months. The varying performance among individual card issuers, with HDFC Bank increasing its spending share and SBI Cards seeing a dip, suggests a shifting competitive landscape within the credit card sector. This underlines the ongoing evolution of India's payment habits, where convenience and diverse digital options are continually reshaping how consumers transact.