Most shoppers prefer using credit cards as a mode of payment for online shopping over in-store purchases. More than 48% of credit card users stated in a survey that they chose only credit cards to make payments on online purchases during the festive season.
Credit card usage
Around 45% users mostly chose credit cards for online purchases and a little for in-store purchases. However, only 7% of users only use credit cards for in-store purchases, according to a survey by Paisabazaar.
There is a stark difference between benefits utilised from discounts and offers on e-commerce platforms when paying via credit cards. Around 80% of users utilised offers through online purchases, whereas only 11% of users benefitted from offline purchases. However, 9% of users did not find any difference in shopping both online and offline.
This is due to offers and discounts offered by e-commerce sites such as Amazon and Flipkart during the festive season.
Nearly 85 per cent of credit card users planned their purchases according to festive season sales to get maximum value out of discounts and offers, the survey says.
“The shift towards online shopping during the festive season reflects a clear consumer preference for convenience and value, driven by attractive credit card offers on major e-commerce platforms. From high cashback to no-cost EMI options, credit cards are now empowering consumers to access greater value in their purchases, which ultimately strengthens the ecosystem of digital transactions and customer loyalty,” said Rohit Chhibbar, Head of Credit Cards at Paisabazaar.
Online shoppers stated that they have benefitted from most credit card offers on major platforms such as Amazon and Flipkart.
Almost 2 out of 3 online shoppers said that their credit cards are especially designed to avail shopping-related benefits on online and in-store expenses. Users mostly save money through higher cashback.
Around two out of three of these shoppers also said they have credit cards specifically designed to offer shopping-related benefits on online and offline purchases. Higher cashback and accelerated reward points were other popular ways people saved on online platforms through credit cards during the festive season.
Another reason why people prefer online shopping is no-cost EMI. Over 68% of credit card users choose EMI facilities, and 57% specifically opt for no-cost EMI. This shows online platforms with flexible payment options have made purchasing expensive products accessible, especially during the festive season.
Some major categories that have seen higher online sales in the festive season are gadgets, clothing and accessories, and home appliances. More than 75% of credit card users said that they have spent on gadgets, including smartphones and smartwatches, mostly due to major discounts offered during popular sales such as such as Amazon’s Great Indian Festival and Flipkart’s Big Billion Day.
