Online payments dropped by 30 per cent throughout the nationwide lockdown, hit by fall in digital transactions throughout sectors like logistics, journey, actual property and meals and drinks, as per a report by fintech platform Razorpay. The report is predicated on transactions on Razorpay’s platform between February 24 to March 23 (earlier than lockdown) and March 24 to April 23 (throughout lockdown).
It discovered that digital transactions recorded highest fall of 41 per cent in Gujarat adopted by Madhya Pradesh (39 per cent) and Tamil Nadu (26 per cent).
Interestingly, segments like utilities (invoice payments), IT and software program, and media and leisure noticed a development of 73 per cent, 32 per cent and 25 per cent, respectively as folks stayed indoors.
“Transactions in logistics dropped by 96 per cent due to gaps in supply chain. Travel sector declined by 87 per cent, real estate by 83 per cent, F&B by 68 per cent, and Grocery by 54 per cent,” the report stated.
Digital transactions in cities like Ahmedabad, Mumbai and Chennai took successful of 43 per cent, 32 per cent and 25 per cent, in these 30 days (March 24 to April 23), it added.
“A significant drop of 30 per cent in online payments in the last 30 days is something we are seeing for the first time after demonetisation,” Razorpay CEO and co-founder Harshil Mathur stated.
He added that in the primary two weeks of March earlier than lockdown, the general online spending elevated by about 10 per cent however later noticed a dip primarily owing to precautionary measures which individuals began to take by staying indoors.
Mathur stated whereas COVID-19 continues to create uncertainty on a lot of fronts, the pandemic can also be a turning level for the fintech trade.
There has been a development in adoption of digital payments, particularly in tier II and III cities in the final 30 days of lockdown.
“I believe this is a huge opportunity for fintech companies, some of them may have to re-examine their business models after COVID-19, prioritising growth and customer acquisition over profitability. The fintech industry will be forced to evolve, think big and act boldly which will eventually result in innovations in payments and banking solutions to be able to meet new customer demands and behaviours,” he stated.
During lockdown, online donations (transactions) in direction of NGOs elevated by 180 per cent, the report stated.
In fee modes (throughout lockdown), UPI made the very best contribution of 43 per cent, adopted by debit and bank cards with 39 per cent and netbanking with 10 per cent.
However, in comparison with the 30 days earlier than lockdown, transactions by way of UPI, playing cards and netbanking declined by 37 per cent, 30 per cent and 28 per cent, respectively, the report added.
Among UPI apps, Google Pay contributed the very best with a 46 per cent share adopted by PhonePe with 29 per cent and Paytm with 10 per cent. During the lockdown, Paytm noticed a drop by 47 per cent, Google Pay 43 per cent and PhonePe 32 per cent.
Mobile pockets transactions, significantly in tier II cities noticed a spike in the final 30 days, owing to elevated contribution to PM Cares Fund and cashback gives and transactions by way of JioMoney elevated by 66 per cent, AmazonPay by 63 per cent and Paytm by 43 per cent, the report stated.