{"id":4181,"date":"2020-07-10T14:44:14","date_gmt":"2020-07-10T09:14:14","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=4181"},"modified":"2025-02-26T15:36:38","modified_gmt":"2025-02-26T10:06:38","slug":"digital-payments-report-101-days-lockdown","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/digital-payments-report-101-days-lockdown\/","title":{"rendered":"Digital Payments Rebound to See a 23% Jump in Lockdown &#8211; The Era of Rising Fintech"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The onset of lockdown towards the end of March created a massive ruckus in our lives. While we stay indoors, working from home, keeping a safe distance from the outside world as much as possible, the pandemic still continues to have an effect on all of us. Things that we had never even imagined have become the new normal.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In our <a href=\"https:\/\/razorpay.com\/blog\/report-coronavirus-covid19-impact-digital-payments\/\" target=\"_blank\" rel=\"noopener noreferrer\">last report<\/a>, we talked extensively about how COVID-19 injured businesses across industries, including digital payments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To move on from there, in this 6th edition of The Era of Rising Fintech Report, we are bringing you an overall landscape of digital payments across several industry verticals, in the last 101 days of lockdown.\u00a0<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\">All findings in this report are based on transactions made on the Razorpay platform from March 24th to July 2nd, 2020.<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">What we thought would be a few weeks of lockdown, quickly turned into months. This brought about many changes to digital payments.<\/span><\/p>\n<p><b>101 days of lockdown (March 24 &#8211; July 2)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Social distancing also led to a surge in the need for companionship and online counselling platforms. The social engagement industry (personal counselling, dating, and matrimony platforms) witnessed a growth of 32%<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">From March 24th to July 2nd, we observed the demand for online courses sweeping upwards. The ed-tech industry mounted up by 23% during this time<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Since people were confined to their homes, more and more online consultations were carried out for health concerns. Online medical services and purchases grew by 20%<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There was also a huge spike in the number of people paying their bills online. This resulted in the utilities industry expanding by 163%<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">The lockdown in numbers<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We also sifted through the digital payments made during the first 30 days (March 24th to April 23rd) and the last 30 days of the lockdown. These are a few insights worthy of mention.<\/span><\/p>\n<p><b>Last 30 days of lockdown (June 3rd to July 2nd)\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">During the initial stages of the lockdown, digital payments took a fall by 30% since many businesses were impacted by the pandemic. But, towards the last 30 days, digital payments made a comeback by 23%<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Another noteworthy observation was that logistics, real estate, and healthcare industries took the road to recovery. The industries boosted by 687%, 496%, and 166% respectively<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Towards the last 30 days, P2P lending and utilities took a downward plunge by 41% and 13%, compared to the first 30 days of the lockdown<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">We also observed a massive shift in consumer behaviour. While UPI and cards were the most preferred payment modes, we saw a spike in modes like PayLater (290%), EMI (125%), and <a href=\"https:\/\/razorpay.com\/blog\/cardless-emi-payment-method\/\">cardless EMI<\/a> (178%)\u00a0<\/span><\/li>\n<\/ul>\n<p><em><a href=\"https:\/\/razorpay.com\/blog\/payment-options-cards-emi-paylater\/\" target=\"_blank\" rel=\"noopener noreferrer\">Looking to offer PayLater &amp; EMI options to your customers? Here&#8217;s how you can.<\/a><\/em><\/p>\n<p><b>First 30 days of lockdown (March 24th to April 23rd)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">We observed an increase in the number of digital payments made towards NGOs by 180%, as many people came together to fight COVID-19<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Utilities, IT &amp; software, and media &amp; entertainment grew by 73%, 32%, and 25% respectively<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Wallet adoption in tier 2 cities saw growth as more and more people turned to Amazon Pay, Jio Money, and Paytm for transactions<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The increase in wallet use can also be attributed to the PM Cares fund, and rewards &amp; cashback offers<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">What\u2019s happening in the fintech industry?<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The pandemic imposed <a href=\"https:\/\/razorpay.com\/learn\/digital-payments-india-definition-methods-importance\/\">digital payments<\/a> upon everyone. As more and more people adopt digital payments, with time, we can expect new-age contactless mobile-based payments to take over<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Freelancers are on the rise. We witnessed a growth of 20-25% from freelancers and micro-entrepreneurs as their demand for digital payments increased in last three months\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The adoption of digital banking has become urgent and pertinent, now more than ever. Neobanking platforms are facilitating businesses to shift from traditional <a href=\"https:\/\/razorpay.com\/learn\/business-banking-services-offered\/\">business banking<\/a> to <a href=\"https:\/\/razorpay.com\/blog\/what-is-a-neobank\/\" target=\"_blank\" rel=\"noopener noreferrer\">neobanking<\/a>, with their customer-driven, data-centric approach<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">We also foresee tier 2 and 3 cities continuing to trust and adopt digital payment modes, beyond bill payments<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Banks and fintech companies are to engage in deeper collaborations to create custom-solutions for SMEs<\/span><\/li>\n<\/ul>\n<h2><b>Digital payments and banking beyond 2020<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Over the years, we have spent hours and hours analysing numbers to draw insights, patterns, and trends. Although the pandemic broke a consistent pattern, with data and more research, here is what we can expect beyond 2020.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The pandemic may lead to a dip in the global GDP, approximately by 6%. This will be a first after the great depression<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">While COVID-19 may reduce the number of funding rounds and alter market conditions, businesses are expected to turn to neobanks, especially ones offering lending and other services for SMEs<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">But there\u2019s hope: The digital payments sector is expected to go beyond USD 1 trillion by 2023 and Blockchain-based <a href=\"https:\/\/razorpay.com\/blog\/what-are-b2b-payments\/\">B2B payments<\/a> are to cross $4.4 trillion by 2024.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s more in our special report.<\/span><a href=\"https:\/\/razorpay.com\/blog-content\/uploads\/2020\/07\/ERF_6th-Edition_blog-14.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4185 size-full\" src=\"https:\/\/razorpay.com\/blog-content\/uploads\/2020\/07\/ERF_6th-Edition_blog-14.png\" alt=\"\" width=\"1241\" height=\"9691\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/07\/ERF_6th-Edition_blog-14.png 1241w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/07\/ERF_6th-Edition_blog-14-131x1024.png 131w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/07\/ERF_6th-Edition_blog-14-768x5997.png 768w\" sizes=\"auto, (max-width: 1241px) 100vw, 1241px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Social distancing led to a surge in the need for companionship and online counselling platforms. The social engagement industry witnessed a growth of 32%.<\/p>\n","protected":false},"author":32,"featured_media":4182,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[78,33,37,77],"class_list":{"0":"post-4181","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payments","8":"tag-covid-19","9":"tag-digital-payments","10":"tag-fintech","11":"tag-reports"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/4181","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\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=4181"}],"version-history":[{"count":3,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/4181\/revisions"}],"predecessor-version":[{"id":21001,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/4181\/revisions\/21001"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/4182"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=4181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=4181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=4181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}