India witnessed 40% growth in digital transactions in Q2 of 2019: Razorpay

Harshil Mathur

Harshil Mathur, Founder, Razorpay

Indian leading converged payment solution company Razorpay, said that the country has witnessed a 40 per cent growth in digital transaction in the second quarter of 2019 compared to the first quarter on back of the Government’s focus to create a less-cash economy and various innovations carried out in the FinTech space.

In a report, ‘The Era of Rising Fintech’, Razorpay said that the Indian fintech ecosystem has entered a new phase of innovation backed by UPI (unified payment interface) that has taken the country a step closer towards a digitally inclusive economy.

Cities such as Bangalore, Hyderabad, Mumbai, Pune and Delhi have topped in digital transactions and that credit and debit cards are the highest contributors in the P2M segment with an estimated share of 50% in April to June quarter and 56% in January to March. Usage of cards grew by 22% between these two quarters.

UPI followed the race with 34% and net-banking with 13%. UPI contribution witnessed a growth of 71% over the last two quarters

UPI with 71% growth is now recognised as the de-facto mode for online payments, both by consumers and businesses and that it would continue to lead​ the way with more customised offerings ​and features ​​to drive financial inclusion, said Harshil Mathur, Co-founder & CEO, Razorpay.

“India has embraced the digital transformation in a significant way. A remarkable growth of 382% in digital transactions over the past year, signifies a lot more than just business growth. This is a true testament of trust, the changing mindset of customer and business, and increased adoption of fintech innovation,” he added.

It is also interesting to note that the customer demand and innovation in digital payments for Sports events is growing, World Cup & IPL among others doubled the share of gaming industry’s contribution from 6% to 15% in the last three months.

“Fintech is transforming the way Indians transact online, not just buying and selling products and services but also consuming content and Razorpay is thrilled to be an invaluable part of this journey,” he added.

Razorpay predicts that 40% of digital payments transaction will be driven by Tier 2 businesses and consumers by 2020.

The company expects the government to introduce new incentives to widen digital payments in India. Besides, to unleash the potential of fintech in banking, collaboration and innovation between banks and fintech is important.

The company added that 15% of India’s GDP will be flowing through digital payments by 2020.

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