Changes in Credit Card Spending Habits During Coronavirus Lockdown

Last Updated : April 14, 2020, 5:22 p.m.

Credit Cards have become the basic necessity for many individuals but after the lockdown, due to Coronavirus, the spending pattern of the individuals have changed. Now, the credit cards are being used for managing necessary expenses rather than spending on comfort and luxuries. So, in this article you can see the changes in credit card spending habits during Coronavirus Lockdown. In some categories of products, the spending behavior using a credit card has been reduced and in some categories, it has been increased. So, you must look at the spending pattern that has changed after the Coronavirus Lockdown.

Credit Card Spending Pattern in Lockdown

You must explore the reduction in spending in the various sectors and an increase in the buying behavior of several products. It will be easy for you to figure out the changes once you see all the reduction and expansion in the expenses.

Reduction in Flight Bookings

In the lockdown, all the flights have been cancelled and they are not taking any further bookings. Therefore the spending on flight tickets through the credit cards has been reduced during the lockdown period. People are not booking any flight tickets and hence the credit cards are not being used for the bookings.

Reduction in Hotel Bookings

The hotel industry is also affected by Coronavirus Lockdown. Everyone is staying at home and the hotel’s rooms are vacant. People are not booking hotels from their credit card and hence their expenditures on the hotel bookings have been reduced.

Online Purchases of Cloths has Been Reduced

The online shopping websites like Myntra, Flipkart, Amazon and many more are not delivering goods so the users are unable to enjoy the offers of their credit cards on these websites. So their spending patterns have been changed as they are unable to buy clothes online. The lockdown has also resulted in the reduction of online purchase of clothes.

Online Purchases of Gadgets has Been Reduced

There are many online websites that have exciting discounts on and cashback offers for a specific credit card. But now the online shopping portals are not delivering electronic gadgets and the individuals are not using their credit cards to buy them. The credit card spending habits during Coronavirus lockdown have been changed.

Reduction in POS Payments

In the emergency of Coronavirus, people are avoiding visiting the grocery or medical outlets and making payment through POS Machine. They are ordering online and making the online payment of the ordered goods using the credit cards. So the payment done by swiping a credit card on the POS machine has also been reduced.

Increase in Grocery Expenditure

Now, most of the individuals are using credit cards to buy essential goods instead of purchasing luxurious goods. The online grocery stores like Grofers and BigBasket are delivering necessary goods and accepting payment through credit cards. Therefore, the expenditure on the essential goods through credit cards has been increased in the lockdown.

Increase in Medical Expenditure

Some online medical stores like PharmEasy, Netmeds, Medlife, and many others are accepting credit card payments and therefore many individuals are ordering medicine online during the lockdown. So the buying behavior of the people using a credit card has been increased in the case of purchasing medicines. Online Medical Websites gives exciting discounts and cashback on several credit cards so this is the reason for an increase in medical expenditure through credit cards.

Expansion of Online Payments

The online payments of insurance premiums, mobile recharges, DTH Recharges, and credit card bill payment have also been increased. Now, the people are using a credit card to make these payments instead of paying through cash. Therefore, credit card spending behavior has been changed after the Coronavirus lockdown.

Conclusion

Now, after exploring the reduction and expansion of the payments made through a credit card, you can figure out the changes in credit card spending habits during Coronavirus Lockdown. The credit card expenditure has been increased to purchase essential goods like milk, bread, wheat, and other eatables instead of purchasing cloth, electronic gadgets and other products. The hotel and flight bookings have also been decreased and the usage of credit card for the payment of these have also been reduced. You can easily find the effect of lockdown on credit card expenditure after exploring all the spending patterns.