INDIA, Bengaluru, 16 April 2024: Razorpay, India’s Leading Omnichannel Payments, and Banking Platform for Businesses, analyzed over a billion transactions processed on its platform between April 1, 2023 and March 31, 2024 to know the spending habits of Indians. In a year brimming with movies, world cups, holidays, and investments in wealth, wellness, and education, Indians are not only savoring the present but also envisioning a brighter tomorrow. They have undoubtedly perfected the art of maintaining equilibrium amidst life’s diverse experiences.
Here are some key insights from The Razorpay Annual Payments Report titled ‘Wealth, Wellness, and Wanderlust’. All findings in this report are based on transactions held on the Razorpay platform between April 2023 and March 2024. Growth percentages are a comparison between FY’24 and FY’23 (unless specified otherwise). Offline data is from Razorpay’s offline payments platform, Razorpay POS.
- Securing Financial Future: From diving into mutual funds to planning the future, from securing tomorrow with insurance to seizing IPO opportunities, Indians went all out, investing in today and tomorrow! Mutual fund investments surged by an impressive 86%, insurance payments have seen a significant 56% growth and trading experienced a remarkable 62% jump in value in FY’24. With this, we witnessed the emergence of a new India. One that is mature, one that not only lives in the now but is also actively securing the future.
- Wellness Wins: In 2023, Indians demonstrated a profound understanding that true prosperity encompasses good health alongside financial wealth. While focusing on health, they didn’t just stretch their bodies; they stretched their wallets too! The data for 2023 reveals, Indians have increased their spending on dieticians by a remarkable 125% in FY’24, indicating a strong commitment to healthy eating habits. Health coaching has also seen a significant 45% jump in transactions, showing a clear interest in fitness guidance. A growing trend towards preventive healthcare was witnessed with sales of health products surging by 39% in FY’24.
- Jet-setting and Movie-mania: In 2023, the trend continues as Indians once again embraced their inner wanderlust and embarked on journeys to their favorite destinations! The data reveals payments for air travel surged by 2.4 times while spending on travel accommodations soared by 29% in FY’24. And if not jet-setting across the globe, Indians indulged in cinematic experiences, with multiplex transactions witnessing a staggering 42% increase in volume. Ticket agencies also reported a remarkable 2.7 times surge in sales. From blockbusters like ‘Jawaan’ to the whimsical ‘Barbenheimer,’ and from ‘Animal’ to the action-packed ‘Salaar,’ Indians embarked on a cinematic journey like never before!
- Knowledge Bug Bites: Indians have a new love affair with learning. The year 2023 has been a testament to India’s thirst for knowledge. Statistics from the year highlight that E-learning witnessed a remarkable 33% growth by volume, showing a strong desire for digital education in FY’24. Discarding the geographies for upskilling and reskilling, India splurged 19% more on distance education thus proving its commitment to a better future. Payments to vocational schools grew 3 times last year, indicating a keen interest in gaining practical skills.
Razorpay dug deep into its treasure trove of in-store shopping data from Razorpay POS and online payments for the year and also found out the Five Days That Stood Out!
- 1st April 2023: April Fools Day hit a record high with In-store book transactions, surpassing the daily average by over 3 times!
- 10th November 2023: Dhanteras came with gold dust! In-store jewelry purchases glittered and gleamed, peaking at over 9 times their daily average. A day for lavish indulgence indeed!
- 19th November 2023: With eyes full of hope, and faces glued to the screen and seat, cab payments took a nosedive, dropping by 28% between 2 and 10 pm as India faced Australia at the World Cup 2023!
- 12th December 2023: Close to the New Year, aviation spending soared to nearly 3 times the daily average, marking a peak for the year!
- 31st December 2023: Online food orders doubled and dine-ins soared to 60% above the daily average! A deliciously festive end to the year!
Reflecting on the trends, Shashank Kumar, MD & Co-founder, Razorpay said, “Indian consumers are evolving rapidly, encouraging brands to revolutionize their customer engagement strategies across all touchpoints. This highlights the growing importance of omnichannel approaches, requiring a robust payment infrastructure for seamless customer experiences. One of our recent surveys found that 96% of Indian shoppers want a seamless experience whether they’re shopping online or in-person”.
Kumar added, “Following FY23’s strong performance, FY24 emerges as a period of rejuvenation and prosperity, characterized by a perfect blend of indulgence and forward-thinking. Witnessing individuals navigate this delicate balance, embracing both present enjoyment and future planning, is truly remarkable. Notably, our trends reflect this maturity and foresight, with an 86% increase in mutual fund investments, a 56% rise in insurance payments, and a 62% surge in trading activity observed among Indians. Furthermore, there’s a noticeable emphasis on holistic well-being, as evidenced by a 39% uptick in products related to preventive healthcare. This signals a collective shift towards expanding horizons while prioritizing health, affirming the adage that ‘health is truly wealth”.
Last year’s surge in online transaction volumes mirrors India’s dynamic embrace of digital payment solutions, marking a significant stride toward innovation and progress. Notably, NPCI reported that UPI transactions in the initial nine months of FY’24 surpassed the cumulative figures for FY’23, underscoring the nation’s burgeoning trust in digital payment methods. This trust is not only a testament to the efficiency, seamlessness, and accessibility of digital payments but also heralds a promising trajectory for India’s digital economy, poised for further growth and development.
