From investments in wealth, wellness and education, to spends increasing in movies, world cups, holidays, Indians are now redefining how money is being spent, according to Razorpay annual payments report which tracked the spending behaviour.

This report analysed over a billion transactions processed on its platform between April 1, 2023 and March 31, 2024, to know the spending habits of Indians.

Overall, sectors like entertainment, travel, education, health and wellness saw robust growth in the last two years. In terms of financial services, mutual fund spends went up 86 per cent whereas trading went up 62 per cent, according to transaction trends on the Razorpay platform.

While the average ticket size for the sector is between ₹5,000 and ₹10,000.

Apart from financial wealth, health and wellness was another space that dominated the minds of Indians. Spending on dieticians surged by a remarkable 125 per cent, indicating a growing emphasis on healthy eating habits. Moreover, transactions in health coaching saw a significant 45 per cent increase, showcasing a clear interest in fitness guidance.

REPORT ANALYSIS

According to the report, the third tier which saw a huge surge in consumer spending was the travel and entertainment segment. The air travel surged by 2.4 times and spending on travel accommodations soared by 29 per cent Meanwhile, multiplex transactions witnessed a staggering 42 per cent increase in volume, reflecting Indians’ love for cinematic experiences. E-learning experienced 33 per cent growth in volume. Indians also showed a keen interest in digital education, with spending on distance education increasing by 19 per cent.

TRANSACTION TRENDS

Looking at the transaction trends on the Razorpay platform, the company reported a 44 per cent jump in terms of value of payments and a 13 per cent rise in transaction volume, between March 2023 and April 2024. In terms of the company’s overall volumes, 85 per cent of the company’s volumes come from online and about 15 per cent coming from offline transactions, said chief financial officer (CFO), Arpit Chug.

Razorpay POS is also becoming a focus for the company as it looks to target mid-market and enterprises. “One thing that is emerging, is the enterprises looking for omnichannel experience. Merchants are looking for those kinds of solutions where the payment experience is smooth and the way you buy something offline and return online, even that experience should be similar. It should all be coming from one common platform,” said Chug.

“Indian consumers are evolving rapidly, encouraging brands to revolutionise their customer engagement strategies across all touchpoints. This highlights the growing importance of omnichannel approaches, requiring a robust payment infrastructure for seamless customer experiences. One of our recent surveys found that 96 per cent of Indian shoppers want a seamless experience whether they’re shopping online or in-person,” said Shashank Kumar, MD & Co-founder, Razorpay.

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