back Back

Digital payments grew by 76% in the last 12 months: Razorpay Report

By Leandra Monteiro

April 12, 2021

  • India
  • Razorpay

Razorpay, FinTech, India, payments, Buy Now Pay Later With a number of businesses across every sector in India taking a severe hit in 2020, times were difficult. But now a year later, embracing e-commerce and online payment methods have played a major role in keeping businesses afloat. Digital payment transactions are up by 76% in Jan-Feb-March(JFM) of 2021, as compared to JFM, 2020. A recent study by Razorpay, the full-stack financial solutions company, in its eighth edition of ‘The Era of Rising FinTech’ report was released today.

The 8th Edition of this report provided a detailed view of the evolving FinTech ecosystem, the digital spending patterns of consumers and an analysis of how digital payments performed in the last 12 months of the pandemic. The report also delves into a comparative analysis of how different sectors and payment modes performed in 2021, as compared to 2020, when businesses and life were hit by Covid.

Vedanarayan Vedantham, Head of SME business, Razorpay said, “The last 12 months have been like being inside a time capsule. India’s digital payments ecosystem in this timeframe has seen the kind of growth that might have happened over a 3-5 year horizon if not for the pandemic. A lot of first-time digital users and previously traditional, brick & mortar businesses have come forward to embrace digital payments. Over 50% of this digital adoption is coming from Tier 2 & 3 cities today, which indicates that this is not just an urban phenomenon. Small Businesses are providing newer payment methods and reaching out to a wider customer base that transcends geographical boundaries. All this is enabled by the convenience of digital payments, and we at Razorpay are humbled to support Small Businesses in their growth journey as Indian businesses and consumers together begin to build a Digitally Inclusive Nation.”

All findings in this report are based on transactions held on Razorpay platform between 2020 and 2021. (JFM: Jan-Feb-Mar, OND: Oct- Nov-Dec). Here are a few highlights:

  • Online transactions in JFM’21 saw a growth of 76% compared to JFM’20 indicating a large scale digital adoption by both businesses and consumers
  • In JFM’21, Tier-2 & 3 cities and towns continued to contribute over 50% of all online transactions
  • As tourism opened up, Jammu & Kashmir found itself in the top 10 Digitally Inclusive States/Union Territories for the first time, with a growth of 36% in online transactions in JFM’21 compared to JFM’20, ranking above Uttar Pradesh, Madhya Pradesh and Haryana
  • Payment options such as Buy Now Pay Later (BNPL) saw a whopping growth of 569% in the last twelve months, owing to consumers avoiding bulk payments and preferring affordable payment modes
  • UPI continues to be the preferred payment option followed by debit Cards, Credit Cards and Net Banking
  • While the beginning of 2020 recorded just about 500 transactions in eNACH payments, a new payment service that allows anyone with a bank account to easily automate recurring payments; eNACH saw a growth of 23,962% in JFM’21 compared to JFM’20, displaying a growing trend of businesses preferring digital & automated recurring payment processes
  • Travel industry has truly made a comeback with a 52% growth in JFM’21 compared to JFM’20, indicating some stability in the Travel & Hospitality economy, and also bringing respite to millions of people working in the sector
  • In the last few months, consumers have increasingly been ordering online and with that F&B industry witnessed growth of 69% from January to March’21
  • Schools, colleges and online educational institutes have increasingly been accepting online payments for fees & salary payments; reflecting a 40% growth in online transactions in JFM’21 vs JFM ‘20
  • Real-estate saw an increase of 65% in JFM’21 vs OND‘20, after a 14% decline in the last 6 months of 2020 compared to the first 6 months, showing green shoots of recovery for the sector this year
  • Mutual funds were the preferred choice of investment for salaried professionals, as the industry saw a 69% growth in JFM’21 vs OND’20, signifying increased interest to save taxes before the FY year ended and live financially healthier lives

Previous Article

April 12, 2021

EML Payments to power Orenda’s payments capabilities for the UK and Europe

Read More
Next Article

April 12, 2021

BharatPe completes 106 million monthly UPI transactions in March 2021

Read More

IBSi Daily News Analysis

payment check out, Open Banking

April 23, 2024


UAE retailers lose millions annually on payments fraud; consumers’ wallets impacted

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News


Mastercard & UniCredit launch touch cards for visually impaired

Read More


Standard Chartered launches new Open Banking Marketplace

Read More


Thunes to acquire payments platform Tilia LLC

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
Get your copy now! IBSi Sales League Table 2023