• Digital transactions grew by 338% from 2018 (Jan-Dec) to 2019 (Jan-Dec)
• UPI registered a massive growth of 885% from 2018 (Jan – Dec) to 2019 (Jan – Dec)
Bangalore, India, January 27, 2020 : Razorpay, the leading full-stack financial services company, recently launched the fourth edition of ‘The Era of Rising Fintech’ report. The report provides an in-depth study of a rapidly evolving FinTech ecosystem in India. It analyses the patterns of digital transactions and the impact of industry innovations such as UPI which are harnessing this digitally inclusive economy.
Here are some interesting insights about how India has fared in the adoption of digital payments. All the findings in this report are based on transactions held on the Razorpay platform from January 2018 to December 2019.
India (2018-2019)
• In 2019 (Top cities), Bangalore was the most digitised city (23.31%), whereas Delhi, climbed up the ladder to the second spot (10.44%) followed by Hyderabad (7.61%). (2018: Bangalore 29.26%, Hyderabad 9.02% and Delhi 8.36%)
• In 2019 (Top states), Karnataka saw the highest adoption of digital payments (26.64%) followed by Maharashtra (15.92%) and Delhi NCR (13.01%)
• While the usage of Cards (46%) and Netbanking (11%) saw a decline in 2019, down from 56% and 23% for cards and Netbanking respectively in 2018, UPI (38%) went up from 17% in 2018
• Amazon Pay was the most prefered wallet among consumers (33%), followed by Ola Money (17%) in 2019
• The top 3 sectors in digital payment adoption for 2019 were Food & Beverage (26%), Financial Services (12.5%) and Transportation (8%). (2018: Food & Beverage – 34%, Tours & Travel – 19%, Utilities – 9%)
• Among UPI apps, Google Pay contributed 59%, PhonePe contributed 26%, followed by Paytm (7%) and BHIM (6%) in digital transactions in 2019. (2018: Google Pay – 48%, BHIM – 27%, PhonePe – 15%, Paytm – 4%).
Harshil Mathur, CEO & Co-founder of Razorpay said, “A growth of 338% in digital payments in a year (2018-19) is massive. It’s the highest we’ve seen so far in the country. Among other factors that led to this exponential growth, it was UPI which rose in prominence, dominating other modes of transactions. For the first time in the history of digital payments, we saw UPI overtaking cards. UPI has become the preferred choice not only for P2P (peer-to-peer) payments but also for P2M (peer-to-merchants) payments.”
He added, “In 2020, trust will be bigger than convenience in digital payments. From banks to fintechs and government bodies to payment networks, all these forces will need to collaborate to build unique solutions aligned to amplifying customer trust, so that together we can make India the most exciting digital payments laboratory in the world.”
