A new survey conducted by Paisabazaar has revealed that credit cards emerged as the dominant mode of payment for Indians during this year’s Diwali season, with shoppers increasingly using them for high-value purchases and strategically planning their spending around cashback offers, no-cost EMIs, and exclusive online deals. The findings suggest a major transformation in consumer behaviour—one that combines convenience, value maximisation, and digital literacy to drive smarter festive spending.
According to the survey, which covered more than 2,300 respondents across India, 42% of credit card users spent over ₹50,000 during the Diwali shopping period. Within this group, 22% spent between ₹50,000 and ₹1 lakh, while another 20% reported spending above ₹1 lakh. These figures highlight the increasing confidence and comfort that Indian consumers have developed in using credit cards for big-ticket transactions, particularly during festive seasons when offers are abundant.
When it came to spending categories, home appliances topped the list at 25%, as consumers took advantage of heavy festive discounts to upgrade or replace household products. Mobiles and gadgets (23%) came next, followed closely by apparel and accessories (22%), as fashion brands and e-commerce platforms rolled out time-sensitive festive deals. Other popular categories included furniture and décor (18%), reflecting ongoing interest in home improvement, while gold and jewellery (12%) remained a preferred choice for traditional buyers who associate Diwali with investment and prosperity.
Santosh Agarwal, CEO of Paisabazaar, said that the surge in high-value spending through credit cards indicates a significant behavioural shift. “Consumers are no longer using credit cards merely as payment tools,” he explained. “They are leveraging them strategically—timing their major purchases to coincide with cashback events, card-linked discounts, and limited-time festive offers.” This trend, he noted, marks the rise of a more financially aware and digitally savvy Indian shopper.
The survey further revealed that 91% of credit card holders planned their festive purchases in advance to take full advantage of promotional offers, while fewer than 10% made purchases without waiting for festive discounts. Among the reward options available, cashback benefits emerged as the most valued, preferred by 20% of users. Co-branded offers (19%) and accelerated reward points (18%) followed closely, showing that loyalty incentives continue to influence consumer choices.
For those opting for installment-based purchases, No-Cost EMI was the most attractive feature, with 56% of respondents saying it encouraged them to buy more expensive products without financial strain. Another 29% said EMIs helped them access better discounts, while 10% viewed them as a simple way to spread out payments over time. This preference for EMIs underscores how affordability tools are now integral to the Indian retail experience, especially during high-expenditure seasons like Diwali.
A notable trend from the survey is the shift toward hybrid shopping behaviour. Nearly 48% of respondents said they preferred a mix of online and offline channels, balancing the convenience of e-commerce with the assurance of in-store experiences. Rohit Chhibbar, Head of Credit Cards at Paisabazaar, observed that this evolution represents the rise of a “strategic and value-aware shopper” who uses multiple channels to maximise savings. “Features like cashback, reward points, merchant tie-ups, and No-Cost EMI have made credit cards indispensable during the festive season,” he said.
E-commerce platforms continued to dominate India’s festive retail landscape. The survey found that 83% of respondents discovered the best deals on Amazon and Flipkart, reflecting their stronghold on festive sales. Myntra (15%) and Meesho (10%) were also popular among shoppers looking for fashion and lifestyle discounts. Additionally, platforms like Ajio, Nykaa, Zepto, and Tata Cliq collectively accounted for 32% of consumer preferences, showing a diversified digital marketplace where specialised retailers are gaining ground.
Interestingly, only 7% of participants said they preferred shopping exclusively at physical stores, indicating that while offline retail continues to exist, it now plays a complementary rather than central role. The findings highlight a nationwide transition toward digital-first consumerism, where technology, credit accessibility, and promotional ecosystems work together to shape purchasing decisions.
Overall, the Paisabazaar survey paints a clear picture of India’s changing consumer mindset. Credit cards are no longer viewed merely as borrowing instruments but as tools for financial optimisation. The combination of flexible EMIs, lucrative rewards, and personalised offers has made them the backbone of festive spending. As consumers continue to seek greater value and control over their finances, this shift toward planned, reward-driven credit usage is likely to define India’s festive shopping culture for years to come.
