During the lockdown, the online donations (transactions) towards NGOs increased by 180 per cent, reflecting overwhelming support from citizens to help the affected, Razorpay, the leading full-stack financial solutions company, said in its fifth edition ‘The Era of Rising Fintech’ report on Thursday.
Historically, the report provided an in-depth study of the FinTech ecosystem by analysing patterns of digital transactions and impact of certain industry innovations on a quarterly basis.
This time, however, given the circumstances that the world is facing to fight the COVID-19 outbreak, the report shares insights about the impact of the national lockdown (30 days) on digital payments in India.
So, let’s take a look at what happened during these 30 days. All findings in this report are based on transactions held on Razorpay platform between February 24 to March 23 (Before Lockdown) vs March 24 to April 23 (During Lockdown):
* As people stayed indoors, sectors such as Utilities (Bill Payments), IT & Software and Media & Entertainment saw a growth of 73 per cent, 32 per cent and 25 per cent respectively
* Lockdown led to decline in few sectors – 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, Food and Beverage (F&B) by 68 per cent, and Grocery by 54 per cent
* During lockdown, Online donations (transactions) towards NGOs increased by 180 per cent, reflecting overwhelming support from citizens to help the affected
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* Transactions in cities like Ahmedabad, Mumbai and Chennai took a hit of 43 per cent, 32 per cent and 25 per cent respectively, in these 30 days
* Karnataka (with 21 per cent), Maharashtra (16 per cent) and Telangana (11 per cent) saw the highest contribution during the lockdown and Gujarat, Madhya Pradesh and Tamil Nadu dropped by 41 per cent, 39 per cent and 26 per cent respectively
* In Payment modes (during lockdown), UPI made the highest contribution of 43 per cent followed by Cards (Debit and Credit) with 39 per cent and Netbanking with 10 per cent. However, compared to the 30 days before lockdown, transactions via UPI, Cards and Netbanking declined by 37 per cent, 30 per cent and 28 per cent respectively
* In UPI Apps, Google Pay contributed the highest with a 46 per cent share followed by PhonePe with 29 per cent and Paytm with 10 per cent. During the lockdown, Paytm saw a drop by 47 per cent, Google Pay by 43 per cent and PhonePe by 32 per cent
* Mobile wallet transactions, particularly in tier-two cities saw a spike in the last 30 days, owing to increased contribution to PM Cares Fund and cashback offers – Transactions via JioMoney increased by 66 per cent, Amazon Pay by 63 per cent and Paytm by 43 per cent
* Overall digital payment transactions in the country dipped by 30 per cent in 30 days