Digital transactions have grown by 80 per cent during the 250 days between November 30, 2020 to August 6, 2021, based on transactions held on the digital payments platform Razorpay.
The financial solutions company on Monday released the ninth edition of ‘The (Covid) Era of Rising Fintech’ report with insights about digital payments in the last 500 days up till August 6, 2021.
August 6 marked 500 days of the pandemic since the national lockdown was first announced, starting March 25, 2020. The report based on transactions held on Razorpay platform between the first 250 days (March 25, 2020 to November 29, 2020) and the next 250 days (November 30, 2020 to August 6, 2021).
The report provides a detailed view of the evolving FinTech ecosystem, the digital spending patterns of consumers and an analysis of how different sectors and payment modes performed during this time, when businesses and life were hit by Covid, the company said.
Every sector and payment mode had been negatively impacted at the start of the pandemic and online payments declined by 30 per cent in early 2020
Multiple sectors have shown significant signs of recovery.
Businesses, especially from tier-2 and tier-3 cities have been a major boost for digital payments exhibiting a growth of 40 per cent from the first 250 days to the next 250 days.
While the metropolitan cities continued to show growth, businesses & consumers from places such as Jammu, Ahmedabad, Shimla and Coimbatore witnessed a growth of 195 per cent, 87 per cent, 49 per cent and 30 per cent, respectively
Additionally, the demand for payment options like Buy Now Pay Later (BNPL) has also increased, registering a growth of 220 per cent so far.
With increased digital adoption amid the pandemic, small businesses are also expected to increase investment in digital technologies in 2021. Affordable payment options such as Buy Now Pay Later (BNPL) have seen an increased preference which is expected to rise and increase transactions for SMBs, the report said.
The Services industry, that is the likes of home services such as carpentry, plumbing and more, has also increased adoption of digital payments with transactions increasing by 138 per cent.
The digital transactions by Freelancers and Homepreneurs saw a growth of 69 per cent during the last 250 days.
Digital transactions in Social Commerce grew by 65 per cent while Direct-to-Consumer (D2C) businesses witnessed a growth of 87 per cent during the last 250 days as compared to the first 250 days of the national lockdown.
Harshil Mathur, CEO and Co-Founder of Razorpay said, "The last 500 days haven’t been ordinary as almost every person and business has realised the need for digital awareness and presence. Fintech companies like us, banks, investors, government and regulators have worked hard during the last 16+ months to speed up digital innovation and adoption amongst consumers and small businesses."
"What makes me really happy is the fact that not a single sector showed negative growth in the last 250 days. This was possible because businesses have recognised the crucial importance of using new payment technologies to support and improve their business growth. The way I see it, I expect this revolution of FinTech to extend from payment innovation to business banking innovation in the next two years," added Mathur.