August data reveals a shift in consumer spending habits as digital payments evolve.
Credit card transaction volumes grew by 26 per cent in August, while debit card usage softened.
Digital payment trends in August 2026 show a sharp contrast between credit & debit card usage. Recent RBI data analysed by 1Lattice shows debit card transaction volumes grew 2 per cent month-on-month. Total debit card value also rose by 1 per cent from July figures.
However, annual performance paints a much weaker picture for traditional debit usage. Year-on-year volumes dropped by 10 per cent while total value fell by 6 per cent. Consequently, consumers appear to be shifting towards alternative digital payment methods.
ATM usage still dominates the debit card landscape. These machines accounted for 80 per cent of volume & 86 per cent of value in August. Meanwhile, Point of Sale & e-commerce sectors remain minor contributors for debit users.
Credit cards exhibited much stronger growth in transaction volumes. Activity rose 4 per cent sequentially & a significant 26 per cent annually. Despite this activity, actual spending value softened during the month.
Transaction value dipped 3 per cent to Rs 2.02 lakh crore from Rs 2.08 lakh crore in July. This suggests that users are making more frequent but smaller purchases. Online shopping continues to lead credit card spending trends.
E-commerce accounted for over 60 per cent of the total value of credit card transactions. This figure increased from the previous quarter, showing growing reliance on digital platforms. POS transactions accounted for just under 40 per cent of the total.
The data highlights a changing landscape for Indian banking & consumer habits. Modern shoppers are clearly favouring credit facilities for their digital purchases over traditional debit methods.
(Source: BFSI)
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