Credit on UPI Drives Festive Spending Surge, Boosts Local Purchases

This year’s festive season witnessed a remarkable shift in shopping behavior, with Indian consumers increasing their offline spending by 30%, according to Kiwi, India’s first platform enabling credit purchases via UPI. The data highlights a growing preference for supporting local merchants, with most transactions taking place at small, neighborhood stores—a timely boost for India’s retail sector during the Dhanteras and Diwali festivities.

Local Stores See Major Spending Increase

Kiwi's insights show that the festive surge was particularly strong among local stores, with general stores seeing a notable 55% rise in spending. Jewellery, a Diwali tradition, saw a 17% increase in purchases. Other categories such as groceries, dining, and electronics also experienced growth, with spend-per-user up by 24%, 18%, and 24%, respectively. This diverse spending pattern reflects the varied needs of Indian shoppers preparing for celebrations, while supporting local businesses.

Tier-1 and Tier-2 Cities Favor Small Businesses

In Tier-1 cities, spending at small shops surged by 31%, compared to a more modest 23% increase at larger retailers. Tier-2 cities showed similar trends, with small stores seeing a 29% rise in spend-per-user, while bigger retailers in these regions saw a 17% increase. This shift in consumer behavior underscores a clear preference for supporting small, community-based businesses during the festive period.

Regional differences also played a significant role in spending habits. Tier-1 cities saw a rise in spending on experiences, with dining expenses up by 22% and jewelry purchases rising by 18%. In contrast, Tier-2 cities focused more on essentials, with electronics spending soaring by 41% and general store purchases increasing by 64%.

"Credit on UPI" Enables Flexible, Community-Oriented Shopping

“Credit on UPI is truly a made-in-India solution that connects consumers with local businesses in seamless and meaningful ways,” said Mohit Bedi, Co-founder of Kiwi. “This festive season, we saw the spirit of community shine through as people shopped at small merchants and enjoyed the freedom and flexibility that Credit on UPI brings.”

With data collected from 400 cities and a user base of over 100,000, Kiwi's platform continues to enhance the festive shopping experience, making it easier for consumers to support their communities and celebrate the season with ease.

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