Consumer spending pattern analysis during Diwali by Visa showed an 18 per cent growth in credit card spends, highlighting the rising dominance of credit cards in the Indian market during the festive season compared with the last season.

The e-commerce channels have witnessed a substantial 25 per cent growth in purchase volume, while face-to-face commerce has experienced a 12 per cent growth.

The data gathered on credit card spends during the five days of Diwali this year in comparison with 2022 provides valuable insights into the shifts in consumer buying behaviour along with economic trends observed during the festive season.

The notable surge in spending signifies a robust economic outlook and a flourishing consumer market, Visa said in a statement.

Indian consumers are now downsizing on debit card usage, Visa’s analysis reveals. There has been a remarkable 18 per cent growth in consumer credit card spends during Diwali.

“This also expands on the translation of festive spirits to economic confidence and a willingness to spend amongst Indian consumers,” it added.

Jewellery stores, electronic stores, and grocery stores/supermarkets emerged as the top categories for face-to-face or in-store commerce/purchases. This underscores the enduring significance of physical retail spaces, particularly for products such as jewellery and electronics.

In online transactions, apparel accessories and discount store merchandise took centre stage. While there has been significant growth in the face-to-face commerce segment, leading e-commerce platforms have experienced substantial momentum, specifically during the festive season.