Credit card spends fall marginally in February

Credit card spends marginally declined on a month-on-month basis in February even as they remained above Rs 1 trillion for the 12th straight month, according to Reserve Bank of India (RBI) data. Credit card spends were at nearly Rs 1.2 trillion in February, lower than Rs 1.3 trillion in January.

E-commerce sales comprised 62.4% of card spends in February, followed by point-of-sale transactions at 37.5%, with other transactions forming the remaining.

“The fall in credit card spends is due to the fact that February has fewer days than other months. I expect credit card spending to remain strong going ahead. Of late, we are witnessing credit cards being used for non-discretionary spending such as utility bills, which is a positive,” head of the credit card division at a small finance bank said.

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While preferences for revolver credit have waned in recent times, credit card issuers are focusing on improving their equated monthly instalment (EMI) offers to attract more customers and improve revenues, say experts.

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Net credit card additions were at 9.1 lakh in February, lower than 12.7 lakh in January.

Among major credit card issuers, Axis Bank witnessed an increase in spends whereas ICICI Bank saw a decline. SBI Cards and Payment Services saw a 9% fall in spends.