Credit card

Credit card users spent 3,949 crore on wallets, digital payments: CRED Insights

The data indicates interesting insights and spending patterns in various categories such as health and wellness, travel, shopping, utility payments, digital payments, wallets, etc.

June-October 2021 saw an increase in the adoption of digital payments and wallets as more people opted for paying rent and tuition by credit. Likewise, credit card spending for online shopping has skyrocketed from January to April and from August to October during the holiday season. Spending on food and utilities remained constant throughout the months, while food and beverages recorded high spending after the lockdown restrictions were eased from July to October.

Here are some of the other key findings from the data analyzed:

Travel Spending Rises With Safer Options And The Holiday Season
As travel restrictions eased and vaccination accelerated, more people have packed their bags to venture out. Credit card travel expenses were ??1,103.11 crore in September – higher than any month in 2021. Spending remained at a high level in October with ??1,091 crore spent by members.

May and June saw 24 lakh transactions, for a total of ??675 crores. However, July saw a return of travel with credit card spending. ??602.26 crores.

Thanks to CRED’s “book now, travel later” program, many members were also able to book their vacations for the holiday season in September and October.

The Maldives and Dubai, which opened their borders to Indians, were the top international destinations in 2021. In India, popular destinations were Goa, Coorg, Jaipur, Udaipur, Bangalore and Mumbai for stays and short trips.

Well-being and personal care see their expenses gradually increase
From July to October, spending increased: especially for CRED members, the integrated store is constantly improving its options for its members with new brands and products. In July, welfare spending was ??31.16 crore, which rose to ??43.45 crore in August while September saw the highest spending in the wellness category of ??44.96 crores.

From January to March, spending on fitness was the highest: Every year, New Year’s resolutions for fitness bring invisible faces to gyms, fitness facilities and, under current circumstances, to home fitness. In 2021, the first quarter saw an increase in credit card payments for fitness. January registered ??40.80 crore (40.80,49,975.5) in spending on fitness as February and March saw ??38.97 crores (38 9780820.9) and ??35.4 crore (354173632.5) spent respectively.

On the CRED store, the following categories have seen an increase in demand:

Retention of men’s grooming products has been a favorite among cred members in the grooming and personal care field.

Attention to health has given a boost to Gummies (as nutraceuticals) contributing 30% of the overall wellness category

Suppressed spending on food and drink since July

Online delivery – From March to May, individuals spent more than ??1,000 crore, collectively, on food and drink when pandemic restrictions were tight and online food deliveries were the only alternative to restaurants.

There was a drastic increase from July to October – as restrictions were lifted in various states and more people began to venture into restaurants, cafes and bars. August ( ??1,750 crore) and September ( ??1,727 crore) recorded the highest transactions and payments made on food and beverages. October continued to see the rise with ??1,427 crore spent.

Paying rent by credit card gave rise to digital payments and wallets

CRED launched its in-app rentpay product through CRED Max in September, which allowed members to put their main rent expense on credit cards and use the savings efficiently. Interestingly, September saw spending of ??5676 crore on digital payments and wallets. This continued in October with ??5744 crores spent. Before that, the maximum spent in this category was in July ( ??4018 crore) and June ( ??3463 crores).

Payments for education move to credit cards

Members can also easily pay tuition, tuition, and tuition fees with CRED Max. From July ( ??186.39 crore) to August ( ??238.97 crore), at the start of the new sessions, credit card spending has increased dramatically for education. More people shifted their big spending from tuition to credit, resulting in high spending in September ( ??247.71 crore) and October ( ??207.08 crores).

The holiday season sees a spike in shopping

The holiday season continued to be a busy time, with a large number of transactions in gifts, clothing, accessories, electronics and more, according to the report.

October recorded the highest spending on purchases with INR 7,535 crore spent on purchases. Another interesting trend in shopping emerged after the restrictions were eased. Spending gradually increased – July ( ??4,758 crore), August ( ??6 833 crore) and September ( ??5,926 crore) against a combined total of ??7,624 crore in June and May. A total of ??52,000 crore was spent on purchases during the year.

Affordability continues to play a key role with banking offers, easy IMEs, and more.

Over the past few years, many ecommerce websites have partnered with merchants to offer minimal interest on purchases converted to EMI. This has increased the purchasing limits of consumers, resulting in regular spending on finances. A total of ??12,661 crore was spent by individuals in finance with ??1,000 crore spent each month collectively.

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