As the adoption of digital payments and wallets grows dramatically, credit card users have spent over Rs 39,000 crore on digital wallets and payments, including Rs 7,850 crore on travel alone in 2021, revealed a new report on Friday.
Spending on food and utility bills remained constant throughout the months, while food and drink recorded high spending after the July-October lockdown restrictions eased, according to data provided by the CRED credit card invoice management platform.
“2021 can be defined as the year of personal care for CRED members. This is visible through the increase in spending in categories such as travel, shopping, and health and wellness. In 2022, we look forward to growing and offering more experiences to our members, said Kunal Shah, founder of CRED.
As travel restrictions eased, more and more people have packed their bags to venture out.
Credit card travel spending was Rs 1,103.11 crore in September, more than any month in 2021. Spending remained at a high level in October with Rs 1,091 crore spent by members.
May and June saw 24 lakh transactions, for a total of Rs 675 crore. However, July saw a return in travel with credit card spending hitting Rs 602.26 crore.
The Maldives and Dubai, which have opened their borders to Indians, were the most chosen international destinations this year.
In India, the popular destinations were Goa, Coorg, Jaipur, Udaipur, Bengaluru and Mumbai for stays and short trips.
From March to May, individuals spent over Rs 1,000 crore, collectively, on food and drink when pandemic restrictions were tight and online food deliveries were the only alternative to dining out.
As restrictions were lifted in various states, more and more people began to venture into restaurants, cafes and bars.
The months of August (Rs 1,750 crore) and September (Rs 1,727 crore) saw the highest transactions and payments made on food and drinks, while October continued to see the rise with Rs 1,427 crore spent.
Spending on wellness and personal care has also grown steadily, with Rs 44.96 crore spent in September, compared to a combined total of Rs 49 crore in June and July.
Fitness remained a popular trend among individuals, particularly in January-March, with spending worth Rs 1,152 crore, according to the CRED report.
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