Online shopping using credit cards has seen a significant surge, driven by attractive festive season deals. In September 2024, Indian consumers spent Rs 1,15,168 crore online through credit cards, accounting for 65.4 per cent of the total Rs 1,76,201 crore spent on credit cards overall, according to the latest data reported by The Times of India on Sarurday.

A survey of 700 credit card users revealed that 80 per cent capitalised on special credit card offers available on e-commerce platforms. The key incentives driving this trend were attractive discounts, no-cost EMI options, and overall better deals.

This trend began earlier in the year. In April 2024, online credit card spending amounted to Rs 94,516 crore, representing 60 per cent of the total Rs 1,56,498 crore spent. The share of online spending steadily increased, reaching 63.4 per cent in July, dipping slightly to 62.4 per cent in August, and then rising to 65.4 per cent in September.

According to the report, e-commerce giants like Flipkart and Amazon experienced a significant surge in sales, particularly in mobile phones and electronics. This uptick aligns with the growing trend of online shopping during the festive season, which kicked off in September.

Datum Intelligence, a data analytics firm, estimates that e-commerce sales during September and October reached approximately $12 billion, marking a 23 per cent increase compared to the previous year.

While online spending has increased, the volume of online transactions still lags behind in-person purchases. However, a survey by Paisabazaar sheds light on why many consumers are turning to online platforms.

According to the survey, "80 per cent of users found more value in online shopping during the festive season." The convenience of shopping from home and getting the best deals pushed e-commerce sales during the festive season this year.