Covid19 will establish a new normal in digital payments, the company says in a quarterly report,
Digital payments player Worldline India has seen a 60 percent drop in its merchant transactions in April compared to the previous month because of the lockdown, the company said in a report on May 26.
“The month-on-month transaction volume and value dipped by over 60% in April 2020. However, with relaxations being introduced, several locations are seeing a good rise in digital transactions,” the report said.
While April saw a massive fall, March, too, had also seen a 10 percent drop in transactions and 12 percent decline in the amount of money paid in comparison to 2019.
The company, which manages more than 10 lakh merchant terminals countrywide, blamed the lockdown and “Janata Curfew”, called on March 22, for the fall.
Analysing the transaction trends for the first quarter of this year, Worldline said that it saw the most transactions in Bengaluru, Chennai, Mumbai, Pune, Hyderabad. Among the states, Maharashtra led the race followed by Karnataka and Tamil Nadu.
Grocery, restaurants, petrol stations and apparel stores drove the maximum number of transactions.
Just like in the United States, where many shops were not expected to reopen even after restrictions were eased, India, too, would see the death of quite a few merchant outlets, Sunil Rongala, vice president for strategy, innovation and analytics at Worldline, said while analysing the broader consumption trends globally and in India.
“While private consumption will recover partially in the medium-term, it will be a while for it to recover to pre-lockdown levels because there is going to be a dip in discretionary spending caused due to layoffs, the negative wealth effect caused by markets tail-spinning and general uncertainty in the economy,” Rongala said.There would be more contactless transactions and QR codes would continue to be in demand, especially among small merchants. Further, below Rs 2000 transactions would go contactless at PoS terminals as well, he added.