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In August, overall credit‑card expenditure fell 2.8% year‑on‑year, dropping to ₹2.02 lakh crore from July’s ₹2.08 lakh crore, signaling a moderation in consumer spend even as annual growth remains positive. The slowdown coincided with a 5.6% dip in new‑card issuances, with banks adding only 1.19 million cards and bringing the total to 124.1 million.
The dip matters because it reflects mounting pressure from high inflation and mounting household debt – a backdrop highlighted by the Federal Reserve’s decision to pause rate hikes while inflation stays elevated.
Looking ahead, the upcoming launch of Apple Pay in India could reshape card usage patterns. Apple Pay is slated to debut next month with Axis Bank’s Visa and Mastercard credit cards, offering iPhone users contactless tap‑and‑pay via Face ID or Touch ID – a service that operates outside India’s dominant UPI ecosystem. This new payment channel may boost card‑based transactions, especially for overseas spending, and could help reverse the recent slowdown in card spend.
Watch for: (1) data on Apple Pay adoption in India and its impact on card volumes, (2) any Fed policy shifts if inflation remains sticky, and (3) future trends in new‑card issuance as banks respond to changing consumer preferences. [[1, 2]]