Info-tech

Karnataka is the most digitised State: Razorpay report

Our Bureau Chennai | Updated on July 18, 2019 Published on July 18, 2019

Harshil Mathur, Co-founder and CEO, Razorpay   -  Bijoy Ghosh

In the April-June quarter, TN ranked fourth; Bengaluru tops the list of cities

Bengaluru-based payment solutions company Razorpay on Thursday launched the second edition of its digital transactions report, ‘The Era of Rising Fintech’. The quarterly report analyses the online spending pattern of consumers and businesses across multiple payment modes available in the Razorpay platform.

According to the report, Karnataka topped the list of most digitised States in the April-June 2019 quarter, followed by Maharashtra and Delhi. Tamil Nadu ranked fourth, followed by Andhra Pradesh.

“Digital adoption in Tamil Nadu has grown by more than 35 per cent in the last three months and UPI as an instrument has grown by 57 per cent in the State during the last quarter,” Harshil Mathur, Co-founder and CEO, Razorpay, said after releasing the report.

Bengaluru topped the list of most digitised cities, followed by Hyderabad, Mumbai, Pune and Delhi. Chennai ranked sixth in digital payments adoption during the April-June quarter.

Digital transaction volume

Within Tamil Nadu, 57 per cent of the digital transaction volume came from Chennai, followed by Coimbatore, Tiruppur, Salem and Erode. Credit and debit cards are the highest contributors to the P2M (person-to-merchant) segment with a 55 per cent share.Net banking’s share is 24 per cent and UPI’s 20 per cent.

In Chennai, the food and beverages sector saw the highest growth in digital payments during the April-June quarter with 31 per cent contribution. It was followed by gaming (13 per cent) and financial services (12 per cent). In the previous quarter (January-March), the share of food and beverages stood at 36 per cent, followed by financial services (15 per cent) and tours and travel (10 per cent).

P2M segment

At the national level, credit and debit cards led the P2M segment with an estimated share of 50 per cent in April-June quarter against 56 per cent in the January-March quarter. Usage of cards also grew 22 per cent during the two quarters.

UPI was the second preferred payment mode in the P2M segment with 34 per cent share, followed by net banking (13 per cent). UPI contribution witnessed 71 per cent growth on a quarter-to-quarter basis. Google Pay was the preferred app on the UPI platform with 57 per cent contribution, followed by PhonePe (26 per cent).

Razorpay predicts that 40 per cent of digital payment transaction will be driven by consumers and businesses in Tier-II regions by 2020. The company also expects 15 per cent of India's GDP to flow through digital payments by 2020.

With marquee investors such as Tiger Global, Sequoia India and Ribbit Capital, Razorpay has so far raised over $100 million in Series A, B and C rounds. The company, which currently has 350,000 merchants on its platform, is looking to increase this count by 4,50,000 by 2020.

Published on July 18, 2019
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