Which banks are leading the credit card market in January 2026?

Private sector banks maintained dominance with a 72.8% market share in January 2026, while public sector banks also increased their share.

What percentage of credit card transactions are online?

Online transactions accounted for over 61% of total credit card usage, with their share remaining stable.

Home / Business and Economy / Private Banks Lead Credit Card Boom Amidst E-commerce Surge

Private Banks Lead Credit Card Boom Amidst E-commerce Surge

6 Mar

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Summary

Credit card spending grew 8.1% year-on-year in January 2026.
Private banks dominate credit card spending with 72.8% market share.
Online transactions comprise over 61% of total credit card usage.

Private Banks Lead Credit Card Boom Amidst E-commerce Surge

Credit card spending increased by 8.1% year-on-year as of January 2026, reaching ₹2.05 lakh crore, primarily driven by sustained e-commerce activity. However, this growth rate is lower than the previous year's 13.8%, attributed to a base effect. The total outstanding credit card balance slightly decreased to ₹2.95 lakh crore in January 2026 from ₹2.92 lakh crore in January 2025.

Private sector banks (PVBs) maintained their dominance in credit card spending, holding a 72.8% share in January 2026, though this saw a 300 bps decline year-on-year. Public sector banks (PSBs) increased their market share, improving digital onboarding and expanding into tier-2 and tier-3 cities. Spending growth is anticipated to remain moderate but resilient, bolstered by services consumption and digital commerce expansion.