{"id":2086,"date":"2019-10-18T14:23:19","date_gmt":"2019-10-18T08:53:19","guid":{"rendered":"https:\/\/rzpwp.blog\/?p=2086"},"modified":"2025-02-12T13:17:41","modified_gmt":"2025-02-12T07:47:41","slug":"the-era-of-rising-fintech-digital-payments-growth","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/the-era-of-rising-fintech-digital-payments-growth\/","title":{"rendered":"India Sees 383% Growth in Digital Payments From FY\u201918 to FY\u201919 &#8211; The Era of Rising Fintech"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">We\u2019re back with yet another fascinating edition of \u2018The Era of Rising Fintech\u2019!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the end of September, we wanted to give you a little glimpse of how digital transactions are carried out in the country. We&#8217;ve focused on how Indian businesses accept payments, as well as how Indian consumers transact. We also wanted to highlight some of the noteworthy developments in the payments space.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since Razorpay is a payments platform, it oversees huge volumes of digital transactions of a multitude of businesses. <\/span><b>All findings in this report are based on digital transacts on the Razorpay platform carried out from January till September.<\/b><\/p>\n<p style=\"text-align: left;\"><em>(JFM: Jan-Feb-Mar, AMJ: Apr-May-Jun, JAS: Jul-Aug-Sept)\u00a0\u00a0<\/em><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s spring right into it!<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The growing demand for digital payments<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Consistently, there has been an amplifying demand for digital payments over the past few years. We\u2019ve undoubtedly seen the adoption of UPI and other fintech innovations making banking and payments very experiential for both consumers and businesses.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">According to the report, India observed a whopping 383% growth in digital payments from FY\u201918 to FY\u201919.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Total digital transactions in volume terms recorded a growth rate of 58.8% during 2018-19, on top of a growth of 50.4 percent during 2017-18 &#8211; <\/span><i><span style=\"font-weight: 400;\">Reserve Bank of India<\/span><\/i><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Although demonetization in November 2016 did not directly aim for India to become a cashless society, it did play a big part in it. The dearth of physical currency gave rise to wallets, just about when <a href=\"https:\/\/razorpay.com\/learn\/mobile-payment\/\">mobile payments<\/a> gained a firming foot.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Just then, NPCI released their innovation &#8211; UPI (Unified Payments Interface) which was much ahead of several money centers all around the world. Quickly, a hundred and odd number of banks joined hands to provide UPI as a payment mode to the merchants and consumers. This pretty much created a revolution and played a massive part in the era of rising fintech in the country.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And ever since, cashless India has been a model for the rest of the world.<\/span><\/p>\n<p style=\"text-align: center;\"><strong>[Suggested reading: <a href=\"https:\/\/razorpay.com\/blog\/upi-preferred-payment-mode-september-2019-data\/\">UPI Overhauls Cards as the Preferred Payment Mode at 45%<\/a>]<\/strong><\/p>\n<h2><span style=\"font-weight: 400;\">P2M Digital transactions in Jul-Aug-Sept<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Like<\/span> <span style=\"font-weight: 400;\">we mentioned before<\/span><b>, <\/b><span style=\"font-weight: 400;\">we enable payments of over 600,000 businesses all across India and oversee immense volumes of digital transactions. Based on these transactions, we were able to analyze and gain intricate insight into payment trends throughout the country. Here are some crowning points.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In JAS, we observed that most consumers preferred digital payments like cards (43.5%), UPI (40.4), netbanking (10.9%) and other online payment modes over <a href=\"https:\/\/razorpay.com\/learn\/what-is-cash-transaction\/\">cash transactions<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">While cards contributed a bigger chunk of digital payments, we noticed that the usage of cards declined by 9% while UPI grew by 26%, from AMJ to JAS<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">While UPI grew, Google Pay became the most preferred app with a hefty hand out of 62% of the total <a href=\"https:\/\/razorpay.com\/upi\/\">UPI transactions<\/a>. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">PhonePe followed Google Pay by chipping in 25% while PayTM and BHIM did their part by 6% and 5% respectively<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As we analyzed the transactions carried out in JAS, we picked up on the top 3 industries that contributed the most.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Food and beverage industry took the largest cut at 25% while financial services and tours and travels contributed 21% and 15% of the total digital transactions<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Logistics sector saw 161% growth in terms of online payment adoption, followed by government bodies showing 109% growth. Financial services also climbed up the ladder by 57%<\/span><\/li>\n<\/ul>\n<p><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Related read: Digital Payments in India&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:4586,&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:14277081},&quot;6&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;8&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;9&quot;:1,&quot;10&quot;:1,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri&quot;}\">Related read: <a href=\"https:\/\/razorpay.com\/learn\/digital-payments-india-definition-methods-importance\/\">Digital Payments in India<\/a><\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Era of Rising Fintech &#8211; Hyderabad<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The top 5 digitized cities of India in terms of payments are Bangalore, Hyderabad, Delhi, Mumbai, and Pune. While we discussed the digitization of Pune (JFM) and Chennai (AMJ) previously, our pick for JAS is Hyderabad. Let\u2019s plunge into the details of Hyderabad\u2019s digital payments ecosystem in JAS.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hyderabad is the 2nd most digitized city in terms of payments. Also, Telangana is the 5th highest contributing state in the total volume of digital payments carried out all over India<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">UPI has mostly taken over digital payments in the country by a storm. As UPI augmented itself by 222% from January 2019 to September 2019, it became the most preferred payment mode in Hyderabad. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">While there are many UPI apps, Google Pay continues to be the most preferred UPI app in Hyderabad, too. The app was used to carry out 59% of the total UPI payments in JAS<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">PhonePe was a close contender contributing 32% of UPI payments made in Hyderabad n JAS. The app also grew in terms of adoption by 84%, seeing the highest growth percent amongst its competition<\/span><\/li>\n<li style=\"font-weight: 400;\">In JAS, we noted that consumers preferred cards to make most of their online payments. 41% of payments were made using cards, beating UPI (39%) and netbanking (18%) in the quarter. In September, UPI became the preferred payment mode with a contribution of <span style=\"font-weight: 400;\">45%<\/span><\/li>\n<li style=\"font-weight: 400;\">Hyderabad saw the highest number of online payments in Telangana. It\u2019s also interesting to note that cities like\u00a0 Secunderabad, Khammam, Karimnagar, Warangal, and Palwancha also contributed their share to Telangana being the 5th most digitized state<\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">The future of digital payments\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">After understanding the customer preferences, payment innovations ecosystem of payments and contribution of various industries, we wanted to provide some insight about what\u2019s in store for Hyderabad.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">With the digital lending sector in India projecting growth by $100 billion by 2023, we can surely expect a lot from the 2nd most digitized city in the country<\/span><\/li>\n<li style=\"font-weight: 400;\">UPI also has the potential to offer much more than it already has! The payment mode can lead the way with much more customized features that can help increase financial inclusion all over India<\/li>\n<li style=\"font-weight: 400;\">With the government GST incentives and <a href=\"https:\/\/razorpay.com\/blog\/merchant-discount-rate-mdr\/\">Merchant Discount Rate (MDR)<\/a> cuts, we can expect an increased and sustained merchant acceptance in Hyderabad<\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Roadblocks along the way to digitization<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">India has shown remarkable strides lately, ever since newer fintech innovations became accessible to consumers. Like any other innovation, there certainly are several roadblocks along the way.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">After analyzing digital payments, we can say that there aren\u2019t enough incentives to promote digital payments. Cashback and scratch cards don\u2019t cut it anymore<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is an insufficient collaboration between banks and fintech bodies<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Smaller merchants need <a href=\"https:\/\/razorpay.com\/blog\/what-is-pos-terminal\/\">POS terminals<\/a> along with cheaper <a href=\"https:\/\/razorpay.com\/docs\/payments\/dashboard\/settings\/payment-methods\/\">payment options<\/a><\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><strong>[Suggested reading: <a href=\"https:\/\/razorpay.com\/learn\/banks-fintech-challenges\/\">Challenges for Banks and Fintech to Work Together<\/a>]<\/strong><\/p>\n<h2><span style=\"font-weight: 400;\">Over to you<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We\u2019re definitely on the way to seeing India becoming a digital superpower. Many cities have already contributed significantly towards its becoming, while tier 2 and 3 cities are slowly gaining momentum.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019re very excited to see what\u2019s next &#8211; with our next edition and a whole new city!<\/span><\/p>\n<p><a href=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/10\/razorpay-era-of-rising-fintech-report.png\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-2097 size-full\" src=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/10\/razorpay-era-of-rising-fintech-report.png\" alt=\"razorpay era of rising fintech report\" width=\"2480\" height=\"14034\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/10\/razorpay-era-of-rising-fintech-report.png 2480w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/10\/razorpay-era-of-rising-fintech-report-53x300.png 53w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/10\/razorpay-era-of-rising-fintech-report-181x1024.png 181w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/10\/razorpay-era-of-rising-fintech-report-768x4346.png 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2019\/10\/razorpay-era-of-rising-fintech-report-362x2048.png 362w\" sizes=\"auto, (max-width: 2480px) 100vw, 2480px\" \/><\/a><\/p>\n<section class=\"full-width-banner\" style=\"background-image: url('\/blog\/assets\/images\/full-width-banner.jpg');\">\n<article>\n<h2>Ready to Start Accepting Payments Online?<\/h2>\n<form action=\"https:\/\/dashboard.razorpay.com\/#\/access\/signup\"><input name=\"email\" required=\"\" type=\"email\" placeholder=\"Your email address\" \/><br \/>\n<button type=\"submit\"> Sign Up<\/button><\/form>\n<div class=\"list\">\n<ul>\n<li>Quick Onboarding<\/li>\n<li>Saved Card Database<\/li>\n<\/ul>\n<ul>\n<li>Razorpay Checkout<\/li>\n<li>24&#215;7 Support<\/li>\n<\/ul>\n<\/div>\n<\/article>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>The Era of Rising Fintech is a quarterly report by Razorpay which deep dives into the various aspects of digital payments in India.<\/p>\n","protected":false},"author":12,"featured_media":2090,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[51],"class_list":{"0":"post-2086","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payments","8":"tag-payments"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/2086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=2086"}],"version-history":[{"count":3,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/2086\/revisions"}],"predecessor-version":[{"id":20405,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/2086\/revisions\/20405"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/2090"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=2086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=2086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=2086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}