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

85% of credit card users in India turn to e-commerce platforms for festive shopping to maximise their savings, according to a survey by Paisabazaar, an online marketplace for consumer credit. The survey included around 700 credit card users, 45% from Tier 1 metros. Most respondents (68%) were salaried, and 76% were under 35.

 

Of the respondents, over 48% chose only e-commerce platforms, while 45% shopped primarily online with a few in-store purchases. Just 7% preferred in-store shopping.

 

The surge in online shopping is linked to the range of discounts and special offers provided by e-commerce firms during the festive sales. Around 85% of respondents said they planned their shopping around these online sales to take advantage of credit card promotions and other deals.

 

 

This trend started earlier in the year. In April, online credit card spending was Rs 94,516 crore, which was 60% of the total Rs 1,56,498 crore spent. The portion of online spending grew to 63.4% in July, dipped slightly to 62.4% in August, and then reached 65.3% in September.

 

Datum Intelligence, a data analysis firm, estimates that e-commerce sales in September and October reached about $12 billion. This is a 23% increase compared to the previous year.

 

Why online shopping is preferred for festive season purchases

 

Paisabazaar's survey found that more than 80% of credit card users who shopped online during the festive season took advantage of offers on their cards. In comparison, only 11% benefited from card offers in physical stores. Just 9% said they found no major offers on their credit cards this season, reinforcing the appeal of online platforms.

 

“The shift towards online shopping during the festive season reflects a clear consumer preference for convenience and value, driven by attractive credit card offers on major e-commerce platforms. From high cashback to no-cost EMI options, credit cards are now empowering consumers to access greater value in their purchases,” said Rohit Chhibbar, Head of Credit Cards at Paisabazaar.

 

When it comes to how credit card users saved the most during their online shopping, card-specific offers on popular platforms like Amazon and Flipkart were the most effective. Two out of three shoppers said they used credit cards with benefits specifically tailored for shopping, both online and offline. Higher cashback and accelerated reward points were also common ways people saved money.

 

A notable trend from the survey was the preference for no-cost EMI options. About 68% of respondents opted for EMI facilities, with 57% specifically choosing no-cost EMI. This flexible payment option appears to make high-ticket items more accessible.

 

What people bought during the festive sales?

 

Gadgets, clothing and accessories, and home appliances were the most popular items among online shoppers. Over 75% of respondents said they spent on gadgets such as smartphones and smartwatches, driven by discounts offered during major sales events like Amazon’s Great Indian Festival and Flipkart’s Big Billion Day.