The change highlights a gap between card usage and profitability. More spending through credit cards does not necessarily mean more interest earnings for the lender. What also matters is how much of that spending turns into a balance on which the customer pays interest.

Customers are increasingly treating their cards as a payment tool instead of a way to borrow. As a result, balances that attract interest now account for a substantially smaller share of overall card spending. This is weakening an income source for issuers despite the growth in transactions.

The trend is affecting major players, including SBI Cards and HDFC Bank. The supplied report identifies pressure on credit card profits, but does not give lender-wise figures or quantify how much earnings have declined. It also does not state the period over which the change occurred.

The central issue is therefore not a lack of customer spending. It is the changing nature of card use: payment activity is growing, while interest-bearing borrowing is becoming less significant relative to spending.