Diwali 2025: Credit Card Spending Soars as GST Cuts and Festive Deals Fuel High-Value Purchases

Indian consumers splurged this Diwali season, driven by the much-awaited GST cuts and attractive card offers. According to a Paisabazaar survey, more than 42% of consumers used credit cards to spend over ₹50,000 on festive purchases, media reports said.

The survey, which covered over 2,300 respondents, revealed that 91% of consumers planned their festive purchases around specific credit card offers, indicating a significant shift in consumer behavior. In contrast, less than 10% shopped without waiting for discounts or offers.

“The surge in high-ticket festive purchases through credit cards reflects a growing affinity towards value and convenience,” said Santosh Agarwal, CEO at Paisabazaar. “Consumers are timing their big-ticket buys to coincide with festive season deals and card-specific rewards.”

Premium Spending on the Rise

The survey highlighted that 22% of respondents spent between ₹50,000 and ₹1 lakh, while 20% exceeded the ₹1 lakh mark, reflecting a notable increase in demand for premium festive spending, Business Standard reported.

When it came to purchase categories, 25% of consumers bought home appliances, followed by 23% purchasing electronic gadgets and 22% buying apparel using credit cards. Meanwhile, only 12% opted for gold and jewellery.

Credit Cards Power High-Value Buys

Credit card benefits emerged as a key motivator for festive spending. The survey found that 71% of respondents used shopping-specific credit cards offering cashback and rewards. Among them, 15% received festive-season offers, while 14% did not gain any shopping-related benefits despite owning such cards.

Cashback was the most preferred reward, chosen by 20% of respondents, followed by co-branded offers (19%) and reward points (18%).

Regarding EMIs, 56% of respondents who opted for installment plans chose no-cost EMI options, 29% were influenced by additional discounts, and 10% used EMIs for convenience.

“This year’s survey reflects the rise of the strategic and value-aware shopper,” Business Standard cited Rohit Chhibbar, Head of Credit Cards at Paisabazaar. “Consumers are seeking to maximize card value through cashback, rewards, and EMI-linked discounts.”

Quick Commerce and Online Shopping Shine Bright

The survey also highlighted a growing preference for online and quick-commerce platforms. About 48% of respondents said they shopped through a mix of online and offline channels.

A vast 83% found better offers on e-commerce apps and websites, particularly on giants Amazon and Flipkart, which together accounted for 43% of total e-commerce preferences. Other popular platforms included Myntra (15%) and Meesho (10%), while Ajio, Nykaa, Zepto, and Tata Cliq collectively made up 32% of consumer preferences.