In July 2026, credit card usage in India continued to grow with a major increase year-on-year in transactions. However, the huge increase in transactions did not result in a similar increase in overall spending. As a result, the average amount spent per credit card transaction dropped considerably during the month.
According to data from Asit C Mehta Investment Intermediates Limited’s monthly Credit Card Insights: July 2026, based on RBI data, credit card transactions increased 24.1% year-on-year to 601 million in July.
At the same time, total credit card spending was only a 7.4% increase to ₹2.08 lakh crore. The difference between the growth of transactions and spending indicates that a larger number of transactions are being made for smaller amounts.
Average Credit Card Transaction Falls 13.5%
The increase in low-value transactions has had a direct impact on the average amount spent each time a credit card is used.
In July 2026, the average credit card transaction value declined 13.5% year-on-year to ₹3,460. This is similar to what happened in June when the average transaction value had declined 12.9% from the same month a year earlier.
Just put differently, consumers are using credit cards more often, but the average amount being spent in each transaction is getting smaller.
One factor that could be responsible for this phenomenon is the growing adoption of RuPay credit cards linked to UPI.
How RuPay Credit Cards and UPI Could Change Spending Patterns
When a RuPay credit card is connected to UPI, customers can make merchant payments through UPI using their credit line. This allows them to purchase things on a credit card that they can’t physically carry or swipe the card on.
As UPI is widely used for low-value merchant payments, the integration of RuPay credit cards with the platform could encourage consumers to use credit facilities for smaller transactions.
This could partly explain why the number of credit card transactions is growing much faster than the overall spending value.
The data available, however, doesn't tell us exactly how much of the 24.1% increase in industry-wide credit card transactions came from credit card-linked UPI payments. Therefore, UPI should be considered one of the factors contributing to the decline in average transaction value rather than the sole reason behind this trend.
PNB Data Shows More Activity in Transactions
Punjab National Bank’s credit card data provides another indication of changing payment behaviour.
PNB recorded around 52 lakh credit card transactions in July, an 8.9% increase from June. And it had experienced a big increase in trade volume in June when transactions rose almost six-fold from the previous month.
PNB also reported strong growth in credit card spending. Its spending increased 173% year-on-year and 8.6% month-on-month in July.
But PNB’s numbers have to be considered separately from the overall industry figures. The bank accounts for only about 0.4% of total credit card spending, so its growth can't be directly applied to the entire Indian credit card market.
Average Monthly Spending Per Card Also Declines
The decline is not limited to the average value of individual transactions. The average monthly spending per credit card also fell on a year-on-year basis.
In July 2026, the average monthly expenditure per credit card was ₹16,812. This was 2.2% higher than June but was 2.4% lower than the corresponding figure in July 2025.
This means that, despite the expansion in India’s credit card base and the increase in transaction frequency, spending per individual card has not grown as fast.
HDFC Bank Leads in Average Spend Per Card
Average spending is also quite different across banks.
HDFC Bank had the highest average monthly spending per credit card in July at ₹22,322. SBI had the second highest at ₹17,392 and ICICI Bank the third highest at ₹17,278.
The differences indicate that card usage patterns vary depending on the bank, customer segment, and type of transactions being made.
What the July Data Indicates
The July numbers are a clear indication of a shift in India’s digital payments system. Credit cards are being used more frequently, but the increase in transaction count is mostly driven by smaller-value payments.
The growing integration of credit cards with UPI would accelerate this trend in making credit-based payments easier for simple purchases.
At the same time, the data also suggests that higher transaction volumes do not necessarily mean that consumers are spending proportionately more. For banks and card issuers, the changing transaction mix could affect rewards strategies, customer acquisition, and the economics of credit card usage.
And July’s numbers indicate a credit card market that grows in volume but gets smaller in average transaction value overall. As UPI-based credit card payments continue to take root, the spending pattern could evolve further in the months ahead.
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