Buying habits in India are evolving rapidly, reflecting aspirations for a better lifestyle, a preference for digital transactions, and the rising popularity of convenient payment options. Over the past decade, rising incomes, urbanization, and a middle class eager to progress have reshaped how and where people spend money. Currently, there are approximately 11.86 crore credit cards in use, and during the financial year 2026, more than ₹23.62 lakh crore was spent via credit cards. This clearly indicates that the ecosystem has moved beyond the expansion phase and firmly into the era of daily utility.
Data from SBI Card, the largest credit card issuer in India, reveals that customers are now spending freely on experiences and lifestyle needs alongside essential purchases, while also maximizing their use of digital platforms.
Discussing the evolving credit card ecosystem in India, Ms. Salila Pandey, MD & CEO of SBI Card, stated, “The rise in disposable income, growing aspirations, policy improvements, digitalization, and a constantly strengthening payment infrastructure have significantly transformed the nature of credit card transactions. People now prefer experiences, lifestyle-related shopping, and daily convenience, which reflects their increasing confidence and changing mindset. At SBI Card, we are focusing on strengthening our product portfolio through strategic partnerships and innovation to meet these changing needs, while contributing to India’s fast-growing digital payment sector.”
Changing Customer Preferences
Driven by higher income and better awareness, Indian customers are spending more on fulfilling desires and gaining new experiences, highlighting an increase in discretionary spending power. SBI Card’s FY 2026 data shows that retail spending has reached an all-time high of over ₹3.54 lakh crore, with a 15% year-on-year growth. Online spending accounted for approximately 62.5% of total retail expenditure, showing that people prefer digital payment methods for both essential and non-essential purchases.
Services tailored to customer needs, seamless digital experiences, and self-service platforms are becoming essential for enhancing engagement and convenience. According to SBI Card, millions of customers frequently use various digital platforms, such as the SBI Card mobile app, the ‘Ask Ela’ chatbot with live chat, and WhatsApp services. Thanks to a focus on customer experience, the SBI Card mobile app holds a stellar rating of 4.6 on the Google Play Store and 4.5 on the App Store.
UPI-Credit Card Integration Accelerates Daily Usage
The scope of digital payments in India has expanded rapidly, with UPI now the backbone of daily transactions. The increasing use of credit cards linked to UPI has brought a major shift in the system. According to SBI Card’s Q4 FY 2026 data, spending via UPI-linked credit cards grew by more than 10% compared to the previous quarter. The highest spending was observed in categories like departmental stores, kirana shops, utility services, fuel, apparel, and restaurants.
Adoption Rising in Tier 2 and Smaller Cities
With rising incomes, better digital awareness, and improving payment infrastructure, people in smaller towns are adopting credit cards rapidly. The facility to link RuPay credit cards to UPI has accelerated this trend, allowing customers in smaller cities to use credit seamlessly for daily needs and small-ticket purchases.
SBI Card data shows that approximately 77% of customers using UPI-linked credit cards and 81% of the total spending through this channel come from Tier 2 and Tier 3 cities. This demonstrates that digital credit is being embraced on a large scale in emerging markets.
Growing Interest in Multi-Card Usage
Customers now prefer using different credit cards for specific needs, such as ‘SBI Card Miles’ for travel, ‘SBI Card Pulse’ for wellness, ‘BPCL SBI Card’ for fuel, ‘Flipkart SBI Card’ for lifestyle, and others for digital transactions. This trend among tech-savvy customers shows that they value category-specific benefits, personalized rewards, and the overall ecosystem of perks.
EMI Driving Credit Card Usage
According to SBI Card’s FY 2026 figures, spending via EMI has seen double-digit year-on-year growth. Customers are increasingly opting for EMI transactions, making the purchase of gadgets and household appliances affordable and easy. This trend of converting high-value purchases into installments is expanding from big metros to Tier 2 and smaller cities. To meet this demand, companies like SBI Card are focusing on partnerships with major brands to offer attractive deals and convenient payment options across electronics, furniture, and other categories.
Conceptual Image Suggestion for the Article
Description:
A visually striking, high-quality digital illustration featuring a sleek, modern credit card floating in the center. From the card, glowing digital lines and icons representing various sectors—a shopping cart (retail), a coffee cup (lifestyle), a plane (travel), and a UPI symbol—extend outwards, connecting to diverse Indian landscapes ranging from modern city skylines to vibrant, colorful town markets. The background should have a subtle gradient of deep blue and gold to symbolize trust and prosperity, with faint binary code patterns indicating the digital transformation of the Indian economy.
