Digital Credit Transactions Increased 5 Times In FY22: MobiKwik Report

The conclusions of the analysis noted that digital financial inclusion is now a reality for the country

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By Paromita Gupta • Jan 1, 2023 Originally published Jan 1, 2023

Entrepreneur India

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On Tuesday, MobiKwik, an Indian digital credit and mobile wallet provider, released the findings of a comprehensive analysis titled '400% more unorganised merchants accepting digital payments now, than in 2021, digital credit transactions increased by 500% in FY'22' which the company undertook for the growing fintech segment. The conclusions of the analysis noted that digital financial inclusion was now a reality for the country and were based on the MobiKwik data of 134 million users.

"It's heartwarming to see that digital payments and financial services have reached every nook and corner of the country. We believe that digital inclusion can be a huge leveller for Indians everywhere and can truly propel the economy's growth," shared Upasana Taku, Co-founder and COO of MobiKwik.

The analysis was done keeping in mind various parameters such as geography, gender and spending patterns.

The Key Points

Digital transactions using the MobiKwik applications were carried out in 19103 out of the total 19253 pin codes in India, demonstrating that 99.2% of the country's pin codes (primarily tier 2 and tier 3 cities) are covered by the 2009 startup.

The brand saw merchant GMV grow 3.2x in FY22 as compared to FY21. Delhi-NCR, Pune, and Mumbai were the leading cities when it came to payments made by unorganized sectors and merchants, whereas Jaipur was one of the fastest growing cities in terms of unorganized sectors and merchants adopting digital mode.

While the 'online merchant' category (online shopping, food, grocery, etc) grew from contributing 80% of GMV pre-pandemic to 90% in 2021, the data collected also showed a change in the digital spending pattern when comparing before and after the pandemic. It concluded that spending behavior in men and women had changed. Pre-2020, men spent most on travel, whereas post pandemic, the preference shifted to credit card bill payments. Meanwhile, for women, travel was the most spent category pre-2020 whereas, now it, has shifted to shopping and BNPL payments. Lastly, during the festive months, women's contribution to GMV increased by 62% compared to the non-festive phase.

Paromita Gupta

Features Writer

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