Indians have used credit cards to spend more on food, shopping, shopping, and paying off state debt by 2020, as they spend on more immersive travel and entertainment, such as credit card services company Cred scans the use of one million Indian members in cities.
The data covers four periods, including early closure, locking, unlocking, and end-of-year holiday season, in many categories such as stores, food, supplies, travel, fuel consumption, and insurance.
Purchasing, including clothing and electronics, and food, including shopping and ordering food from restaurants, has seen the highest credit card spent over the year, accounting for 36% of spending by 2020, a behavior-driven by restrictions.
Spending on purchases and food acquired at pre-covid levels by the end of 2020, Cred said in his analysis of a credit card spent in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune. Cred members spent 6% more on purchasing food using credit cards during the holidays compared to pre-harvest time, according to data.
Cred, which encourages customers to pay off their credit card debt, has 5.5 million members.
The epidemic saw a shift in consumer spending, benefiting from other categories such as integrated food, electronics, e-commerce while impairing visual, entertainment, outdoor travel, and travel. Expenditure linked to spending has weakened in several areas.
Credit cards use other components such as travel, banking, and finance, as well as digital payments, which have begun to rise compared to the closing and closing rates. This shows that members’ perceptions about spending are cautious and indicate advances in plastic, which will improve in the coming year. However, sectors such as health and welfare, and infotainment, were the last on the list of consumer credit card services for members, the report said.
By 2020, consumers are also experiencing difficulties in home budgets, a trend supported by Cred data, which shows that people are turning to credit cards to make banking and financial payments, including EMIs and additional insurance policies, as the epidemic creates uncertainty over revenue.
EMIs, which contain less than 3% of credit cards disbursed in all cities by 2019, have risen to 8% among Ahmedabad members and 7% in the National State.
Currently, bank and cash expenditure have increased from 23% of the total amount spent before closing to 29% during the closing period.