Razorpay says tier-II, III cities main drivers of online transactions in 2020
New Delhi: Online transactions grew 80 per cent in 2020 over the previous years, driven by strong adoption of digital transactions in tier-II and III cities, according to a report by fintech firm Razorpay.
The report pointed out that UPI transactions outgrew cards, net banking and wallets with 120 percent growth in 2020.
Razorpay said it witnessed a decline of 30 percent in digital payments initially during the lockdown, but after the first 70 days of the national lockdown, digital payments rebounded by 23 percent.
“In comparison with 2019, online transactions grew by 80 percent in 2020, suggesting a magnificent adoption of digital payments by consumers and businesses, alike,” it said.
Digital payments saw a 73 percent growth between July and December compared to first six months of 2020.
Tier-II and III cities contributed to 54 percent of digital transactions in 2020, demonstrating a 92 percent growth.
Chandigarh, Punjab, Arunachal Pradesh, Assam, and Kerala saw a growth of 205 percent, 187 percent, 127 percent, 124 percent and 117 percent, respectively.
Digital payments for utilities/bill payments grew 357 percent in 2020 while payments for mutual funds rose by 382 percent.
Education, e-commerce and healthcare sectors also witnessed a significant growth of 167 percent, 189 percent and 148 percent, respectively.
UPI became the most preferred one in 2020, overtaking cards, netbanking, and wallets by showing a steep 120 per cent growth.
Wallets regained attention in 2020 owing to the increased offers, cashbacks and an increase in the number of players.
“Many moved their business online for the first time, ushering in a new digital transformation,” said Razorpay co-founder and CEO Harshil Mathur.
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