Razorpay’s ‘101 Days Of Covid-19 Era’ Report
● Digital Payments Rebound, see a 23% jump in last 30 days
● Stress in income has reduced consumer spending, Paylater & EMI become Preferred Payment Modes
Bengaluru – 6th July :Razorpay, the leading full-stack financial solutions company, launched a special report today, titled ‘101 Days of Covid-19 Era: Impact On Digital Payments’, as part of the sixth edition of The Era of Rising Fintech.
The report provides an in-depth study of an evolving FinTech ecosystem in a pandemic era. It analyses consumer behaviour and digital spending patterns during lockdown. It also provides comparative analysis of how different sectors and payment modes performed in the first 30 days of lockdown (March 24 – April 23) Vs the last 30 days of lockdown (June 3 – July 2).
It’s interesting to note that with the economy inching towards normalcy, digital payment transactions have rebounded by 23% in the last 30 days. The overall digital transactions declined by 12% in the last 101 days, compared to a 30% drop in the first 30 days of lockdown.
Let’s take a look at what the rest of the insights look like during the last 101 days. All findings in this report are based on transactions held on Razorpay platform between March 24 – July 2 (101 Days of lockdown).
101 Days Of Lockdown (March 24 – July 2)
– Online Education sector grew by 23% as extended lockdown has led to a massive rise in demand for online courses. Also Medical Services are picking up as online consultations & purchases have increased by 20%
– To ensure health and safety from Covid-19, Indians opted to stay indoors and paid bills online – this contributed to the growth of Utilities (Bill Payments) sector by 163%
– Locked up at home, people have turned to dating apps for companionship. Social isolation has also led to a surge in online counselling platforms to connect with mental health experts. The Social Engagement sector (Personal Counselling, Dating & Matrimony websites) has witnessed a 32% growth
– Karnataka (with 23%), Maharashtra (17%) and Telangana (11%) saw the highest contribution during the lockdown and Gujarat, Madhya Pradesh and Tamil Nadu dropped by 35%, 32% and 2% respectively
Last 30 Days of Lockdown (June 3 – July 2)
– With the economy reviving, sectors like Logistics (687%), Real Estate (496%), Healthcare (166%) are starting to see some normalcy. However, P2P Lending and Utilities declined by 41% & 13% respectively, as compared to first 30 days of lockdown
– Due to stress in income across households, consumer payment behaviour has changed. Paylater, Cardless-EMI & EMI have become preferred payment modes with a growth of 290%, 178% and 125% respectively
– When it came to payment methods UPI continued to be the preferred mode and grewby 43%, Cards by 40% and Netbanking by 10%
First 30 Days Of Lockdown
– During Lockdown, Online donations (transactions) towards NGOs increased by 180%, reflecting overwhelming support from citizens to help the affected
– As people stayed indoors, sectors such as Utilities, IT & Software and Media & Entertainment saw a growth of 73%, 32% and 25% respectively
– Lockdown led to decline in few sectors – Transactions in Logistics dropped by 96% due to gaps in supply chain. Travel sector declined by 87%, Real Estate by 83%, Food and Beverage (F&B) by 68%, and Grocery by 54%
– Mobile wallet transactions, particularly in tier-2 cities (via AmazonPay, JioMoney and Paytm) saw a spike, owing to increased contribution towards PM Cares Fund and cashback offers