Year Ender 2021: Credit card users spent nearly $5.5 bn on CRED in 2021

Credit card spending in India witnessed an uptick after the easing of lockdown and restrictions following the second wave. According to the insights shared by credit-card payments and rewards platform, CRED, users on the platform spent nearly Rs 39,490 crore (nearly $5.5 billion) in 2021 while paying for utilities, shopping, food, travel etc. Notably the travel expenses amongst credit-worthy individuals also increased post July with total expenses at Rs 7,850 crore (over $1 billion). It rose to Rs 1,103 crore in September; higher than any other month in 2021, as per the report.   “With CRED’s ‘book now, travel later’, many members were also able to book their vacations for the year-end festivities during September and October. Maldives and Dubai, which opened borders to Indians, were the most picked international destinations of 2021. Within India, popular destinations were Goa, Coorg, Jaipur, Udaipur, Bangalore and Mumbai for staycations and short trips,” the report stated.   “2021 can be defined as the year of self-care for CRED members. This was visible from the increased spend across categories such as travel, shopping and health & wellness. Throughout the year, we introduced a range of new products and services to enable the good life for our members and cater to their ever-evolving needs. CRED’s community of trustworthy individuals is growing and adopting our products along with giving back to the community. In 2022, we look forward to growing and providing more experiences to our members,” Kunal Shah, founder of CRED, said.   Wellness and personal-care also saw a gradual increase in spending with Rs 44.96 crore being spent in September compared to a combined total of Rs 49 crore in June and July. Products like men’s grooming and fragrances gained popularity. The CRED survey said that the curation of men's grooming products has been favorites among its members in. Attention to health gave a boost to gummies (as nutraceuticals) contributing to 30 per cent of overall wellness category, it added.   Digital payments, wallets and shopping were the top categories Indian credit card holders spent on in 2021 revealed CRED Insights. June-October 2021 saw an increase in adoption of digital payments and wallets as more individuals opted for paying rent and education fees via credit. Similarly, credit card spending on e-commerce shopping soared during January to April, and August to October during the festive seasons. Expenditure on food and utility bills remained consistent during all months while food and beverages saw high spending after the lockdown restrictions were eased from July to October.

Pent-up spending was witnessed in the food delivery sector with a drastic increase from July to October -- as restrictions were lifted across various states and more individuals started venturing out to eateries, cafes and bars. August (Rs 1,750 crore) and September (Rs 1,727 crore) recorded the highest transactions and payments made on food and beverages. October continued to see a rise with Rs 1,427 crore spent.

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