Google Pay and PhonePe Have Contributed Highest Amongst All The Payment Applications During The Lockdown: Razorpay
With 30 days into the lockdown, Razorpay in its fifth edition report 'The Era of Rising Fintech' informs about the trends in the digital payment market. Amongst all the UPI Apps, Google Pay contributed the highest with a 46% share followed by PhonePe with 29% and Paytm with 10%. During the lockdown, Paytm saw a drop of transactions by 47%, Google Pay by 43% and PhonePe by 32%.
The report also highlights that UPI amongst all the other in payment modes is making the highest contribution of 43% followed by cards including debit & credit with 39% followed by net banking with 10%. During the post-Covid times, transaction through UPI, Cards and Netbanking declined by 37%, 30% and 28%, respectively
The report also highlighted utility payments in IT, software and media entertainment increased by 73%, 32% and 25%, respectively. Due to no movement in the transport sector, transactions in logistics dropped by 96% due to gaps in the supply chain. As the travel industry is totally closed, the transactions in the travel industry declined by 87%. The report also highlighted that the real estate industry also saw a decrease in the digital transaction by 83%. However, a few sections of food and beverage functioning Food and Beverage (F&B) is not so severely hit but it also saw a decline of 68%. While people are still buying groceries but the digital transactions decreased by 54%.
Harshil Mathur, CEO and Co-founder, Razorpay said, “A significant drop of 30% in online payments in the last 30 days is something we are seeing for the first time after demonetisation. In the first two weeks of March before lockdown, the overall online spending increased by about 10% but later saw a dip primarily owing to precautionary measures which people started to take by staying indoors. While COVID-19 continues to create uncertainty on a number of fronts, this pandemic is also a turning point for the fintech industry in many ways, one such being the tremendous adoption in the use of digital payments, especially in Tier 2 & 3 cities, in the last 30 days of lockdown.”
