UPI Spending In Bars, Clubs, And Lounges Rebounds After Three-Month Dip

The Unified Payments Interface spendings in bars, clubs and lounges turned positive in August after slipping for the past three months, as per the latest transaction value data by National Payments Corp.

The discretionary food and beverage sector showed a more nuanced recovery, recording a 6% growth month-on-month at Rs 49,800 crore. Bars, pubs and liquor shops stabilised at Rs 6,100 crore with 3% month-on-month growth, reversing July’s contraction. Meanwhile, eating places & restaurants rebounded with 7% month-on-month growth after two months of flat or negative growth.

Fast food restaurants, at Rs 14,500 crore, held steady momentum, growing 5% month-on-month, an improvement from the 2% growth seen earlier.

However, NPCI data showed that essentials continue to anchor consumption, with spending at Rs 75,800 crore in August, sustaining 3% month-on-month growth compared to 4% growth in July.

Within essentials, candy, nuts & confectioneries surged +14% MoM, indicating impulse-led demand resilience. Meanwhile, groceries & supermarkets maintained leadership with +5% MoM growth at Rs 681 billion, accelerating from ~2% in July.

Lifestyle spending rose +13% month-on-month to Rs 50,900 crore in August, largely driven by festive triggers, masking underlying softness across several sub-categories.

Under retail sub-segments, clothing shops at Rs 11,800 crore rebounded strongly with +9% month-on-month versus +5% earlier, supported by Independence Day and festival promotions.

Department stores at Rs 4,100 crore grew marginally at +1% month-on-month, reflecting cautious consumer spending in broader retail formats.

Online marketplaces at Rs 7,800 crore contracted 3% month-on-month, cooling off after a sharp 23% surge in July led by the Prime Day and GOAT Sales effect.

Uniforms and commercial clothing saw a robust 19% month-on-month increase, its first growth in three months.

Other lifestyle spending, including beauty services at Rs 2,300 crore, delivered strong momentum with 12% growth month-on-month. Meanwhile, electronics spending remained muted at Rs 12,400 crore, as retail grew a modest 1%, while repair shops barely expanded.