PayLater, Cardless Credit and EMI Preferred Payment Modes Amidst Covid-19 Lockdown: Report
A report by Razorpay titled '101 Days of Covid-19 Era: Impact On Digital Payments' shows that credit-based payment modes have seen an exponential rise as the countrywide lockdown put household incomes in deep stress
As the Indian economy gradually unlocks post the Covid-19 outbreak and ensuing lockdown, digital payment transactions have rebounded by 23 per cent in the last 30 days, shows a report by Razorpay.
Titled ‘101 Days of Covid-19 Era: Impact On Digital Payments’, the report shows that digital transactions were massively hit in the first 30 days of the countrywide lockdown, likewise everything else, witnessing a 30 per cent drop. But, in the last 101 days, starting 24 March, digital transactions contracted by an average 12 per cent , as per the report findings.
“The digital payments industry couldn't escape the pandemic crisis,” Harshil Mathur, CEO and co-founder of Razorpay noted. “…a rebound of 23 per cent over the last 30 days is a sign of gradual revival of the digital economy,” he added.
Expectedly, online payment of utilities grew exponentially as “Indians opted to stay indoors and paid bills online to ensure health and safety from Covid-19,” the report stated.
“After witnessing an increased demand for digital payments in Tier 2 and 3 cities, I believe Covid-19 has definitely propelled the final push to overthrow cash, which even demonetisation couldn’t, as Indians now become more comfortable paying for services without cash,” said Mathur.
On the flipside, credit-based payment modes have seen an exponential rise as the countrywide lockdown imposed to contain the spread of Covid-19 virus brought the economy to a near halt, putting household incomes in deep stress. Options like Paylater, Cardless-credit and EMI grew exponentially, the report shows.
For payment methods, Unified Payments Interface (UPI) continued to be the preferred mode and grew by 43 per cent, whereas cards and netbanking saw a growth of 40 per cent and 10 per cent, respectively. In tier-2 cities, mobile wallet transactions (via AmazonPay, JioMoney and Paytm) witnessed high demand, “owing to increased contribution towards PM Cares Fund and cashback offers,” the report stated.
Growth in Dating Apps and Online Counseling
Social isolation has prompted people to turn to dating apps for companionship along with a surge in online counselling platforms to connect with mental health experts, the report said. The Social Engagement sector (Personal Counselling, Dating and Matrimony websites) grew by 32 per cent in the last 101 days of lockdown.
Online education and medical sector are the other two gainers as the extended lockdown led to a massive demand for online classes and online consultations and medical purchases. However, digital transactions in other sectors saw a major decline, including logistics dropping by a whopping 96 per cent due to gaps in supply chain, while travel, real estate and F&B down by 87 per cent, 83 per cent, and 68 per cent, respectively.