The report analyses digital transaction modes, online spending patterns, impact of UPI and other game-changing industry innovations, which are taking the country a step closer towards a digitally inclusive economy.
The converged payments solution company, Razorpay, launched their first edition of ‘The Era of Rising Fintech’ report in Bangalore today. Razorpay predicts that by 2020, 40 percent of digital payment transactions in the country will be driven by Tier 2 and 3 businesses and consumers, and 50 percent of internet users will be using digital payments.The Razorpay report also expects that 15 percent of India’s GDP will be flowing through digital payments by 2020. All findings in this report are based on transactions held on Razorpay platform from FY’18 to FY’19. Some of the key findings from Razorpay’s report include:
- Non-cash transactions are likely to overtake cash transactions in the country by 2023
- Since demonetization and the launch of UPI, the merchant demand for digital payments has increased by 70 percent, year on year
- UPI has also made its way successfully to cities like Kolkata, Ahmedabad, Lucknow and Ranchi
- Share of wallets (P2M) has dropped sharply to 1.87 percent in FY’19 from 6.3 percent in FY’18, while UPI payments shot up from 1.6 percent in FY’18 to 17 percent in FY’19
- The UPI Transactions grew by 4000 percent in 2018
- Of the top three sectors, Travel, Utilities and E-Commerce, Utilities shot up tremendously to 17 percent in FY’19 from 2.4 percent in FY’18, indicating how Indians are adopting digital payments in everyday life
- Pune, Chennai, Bangalore, NCR, Hyderabad and Jaipur are the most active cities transacting digitally
Harshil Mathur, Co-founder & CEO, Razorpay said, “The sky-rocketing demand for digital payments signifies a lot more than just business growth. We saw that the SMEs in Tier 1 and 2 cities are driving a solid growth of 75 percent in non-cash transactions. This is a testimony of growing trust, changing mindset of traditional businesses and focused effort of government and public authorities towards developing the FinTech infrastructure.”
“In the coming months, we are looking at more game-changers like eNACH/eMandate, improved mobile-tech, more SME-oriented products and services, and stronger collaboration between FinTech services community and banks. Among the many sectors embracing digital payments, the fact that Utilities shot up tremendously to 17 percent in FY’19 indicates how consumers are responding to digital payments. Fintech is transforming the way Indians buy and sell and Razorpay is thrilled to be an invaluable part of this process,” he added.