PayU, BFSI News, ET BFSI
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There has been a 52 percent increase in transaction volume and a 76 percent increase in expenditure year over year (May 2020 vs. May 2021). There was a 10% rise in the number of transactions after lockdown 2021 compared to pre-lockdown months, and a 21% decrease in average ticket size, demonstrating that customers are adopting online payments even for smaller transactions.
UPI continues to be the headliner, with number of transactions increased by 320% and expenditure increased by 306% in lockdown 2.0. Key insights of the report are as follows:
Online donations to charitable causes
Digital payments for charitable causes were able to get a good growth on the transactions by a massive 731% and expenditure by 2308% in lockdown 1.0. The lockdown 2.0 provides powerful forensic evidence in the record by distending the transactions and expenditure increased by 575% and 476% respectively. Within this category, various NGOs encapsulated activities to raise funds for covid relief.
Logistics hiked with partial and staggered lockdowns
Logistics sector nourished the undeviating growth in both transactions and expenditure with 217% and 227% respectively in lockdown 2.0 with a comparison of ventures as in lockdown 1.0. The utilisation of courier delivery service and purchase and transfer of essential items added proactive grounds to logistics. Further as per the bill passed in budget 2021, the scheme attempt to upsurge the digital payments.
Digital payment activities of Entertainment and gaming demoted
These sectors perceived degrowth. Transactions and expenditure took a major toll in the entertainment sector, hence down turning the activities in lockdown 2.0 by 35% and 41% respectively.
Likewise, the gaming sector too showed a turnaround in trends, declining by 63% compared to pre lockdown months.
The inflated sense of fall could be highlighted on the notion of consumers shifting from non-essential and muting of sentiments in this phase.
Travelling
The aftermath of lockdown 1.0 and 2.0 on travelling magnify the transactions and expenditures by 186% and 125% respectively. The relaxation in staggered lockdown navigated the travelling activities. But immediate lockdown downplayed the experience of transactions by 65% and by 78% in expenditure
UPI Growth
Lockdown 2.0 recorded phenomenal growth for UPI as a payment mode. The number of transactions through UPI increased by 320% and expenditure increased by 306% in lockdown 2.0, compared to lockdown 1.0. The next highest growth in modes of payment was observed in credit card transactions, as the number of transactions increased by 87% and expenditure increased by 69% year on year. For net banking and debit card modes, the number of transactions grew by 12% and 6% respectively year on year.
Pharmacy
The online digital payment transactions and expenditures harped by 78% and 31% respectively in lockdown 2021 compared to pre lockdown months. 9% decrease in transactions and 22% decrease in expenditures was witnessed with every succeeding month.
Retail and e-commerce
The analogy of lockdown 1.0 and 2.0 on account of transactions and expenditure in retail and e-commerce was seen as 171% growth in transactions and 108% in expenditure.
Education
Lockdown 2.0 anticipated expenditures to a growth rate of 37% whereas the transactions slipped by 31% as compared to lockdown 1.0.
Recharge and utility payments
The transactions and expenditures inched by 68% and 11% respectively in lockdown 2.0 compared to pre lockdown.
Groceries
Year on year, number of transactions grew by 171% with 108% growth in expenditure. There was a 52% increase in the number of transactions post lockdown 2.0 compared to pre lockdown months in 2021.
Hemang Dattani, Head–Data Intelligence, PayU said “Broadly, businesses and consumers were better prepared to deal with the exigencies of lockdown in 2021. Given that the lockdown was staggered and geographically restricted, the growth of digital payments has been steady, especially for sectors like retail, logistics & pharma.’’
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