Tamil Nadu ranks 4th on
the list of Most Digitised States in India, grew by 35% in the last three
months: Razorpay’s
‘The Era of Rising Fintech’ Report
o
Chennai stands 6th in digital payments
adoption among Indian cities in Q1 (AMJ) 2019
o
Chennai’s UPI transactions grew by 57%
from JFM (Jan-Feb-March) to AMJ (Apr- May-June)
o
SMEs prefer Payment Links and Payment
Pages for B2B payments
Chennai, July 18th,
2019 – Razorpay, India’s first converged
payments solution company, launched its second edition of ‘The
Era of Rising Fintech’ report in Chennai, today. The report analyses digital
transactions and aims to provide quarterly insights
around how consumers and businesses transact
digitally and throws light on potential game
changers in payments technology. According to
the report, Tamil Nadu is the 4th highest contributing state in digital
transactions in the country with Chennai contributing the highest of 57% in digital transaction
volume, followed by Coimbatore, Tirupur, Salem and Erode.
Here
are some other interesting findings
about Chennai’s adoption of digital payments from the Razorpay report. All findings in this report are based on
transactions held on Razorpay platform from January to June 2019. (JFM:
Jan-Feb-Mar, AMJ: Apr-May-Jun)
Chennai:
-
Credit and debit cards are the highest contributors in the P2M segment with an
estimated share of 55%, followed by Netbanking (24%) and UPI (20%) in AMJ
-
UPI
transactions have grown by 57% in the last quarter when compared to the
previous quarter
-
Google
Pay
continues to be the most preferred UPI mode with a contribution of 72% in AMJ
(grew by 59% from JFM)
-
Although PhonePe contributed 14% in AMJ, it saw the highest adoption growth
of 66% since JFM
-
Top
3 sectors
for digital payment growth in AMJ: Food &
Beverages (31%), Gaming (13%) and Financial
Services (12%). The Gaming industry witnessed a 244% growth in the last quarter
due to World Cup & IPL, among other sports events
- Top
3 sectors in JFM: Food
& Beverages
(36%), Financial Services (15%) and Tours and Travels (10%)
-
Chennai also demonstrates a good adoption for newer payment methods such
as eNACH/ eMandates and UPI
- Payment links and Payment Pages are increasingly becoming the preferred
modes of payment for Chennai SMEs
India:
-
Bangalore
tops the list of most digitised cities followed by Hyderabad, Mumbai, Pune and
Delhi
-
The top 5 states include Karnataka, Maharashtra, Delhi, Tamil Nadu and
Andhra Pradesh
-
Nationally, credit and
debit cards are the highest
contributors in the P2M segment with an estimated share of 50% in AMJ and 56%
in JFM. Usage of cards grew by 22% from JFM to AMJ
-
UPI
followed the race with 34% and net-banking with 13%. UPI contribution witnessed
a growth of 71% over the last two quarters
-
Google
Pay continues to be the most preferred UPI app
with a contribution of 57%. Although PhonePe contributed 26%, it saw the
highest adoption growth of 82% since JFM. Other players, BHIM (8%) and Paytm
(7%) continue to decline in UPI contribution, compared to JFM
-
Top
3 sectors for digital payment growth in AMJ: Food
and Beverage (29%), Gaming industry
(15%, up from 6% in JFM) and Financial Services (14%)
- Top
3 sectors in JFM: Food and Beverage (31%), Financial services (21%) and Travels
(9%)
- Share
of wallets increased by 19% from JFM
to AMJ - The highest contributing wallet was Ola Money
Harshil Mathur, Co-founder
& CEO, Razorpay said, “Tamil Nadu is among one of the most developed States in India and
clocks about 7% GDP growth, year on year. Other than Chennai contributing the
highest number of digital transactions in Tamil Nadu, we noticed
that Lending is one of the upcoming growth sectors with a 69% contribution in
the last quarter. With the increasing usage of UPI access to the
internet, the shooting demand for digital payments implies a lot more than just
business growth in Chennai. It is a testimony of growing trust, the changing
mindset of traditional businesses and focused effort of government and public
authorities towards developing the fintech infrastructure. In the coming
months, I am certain that Chennai will create a larger impact in the digital
payments ecosystem, and considering the pace at which FinTech is transforming,
Razorpay is excited to be an invaluable part of this journey.”
Razorpay
predicts that 40% of digital payments transaction will be driven by Tier 2
businesses & consumers by 2020. In financial services, Lending will be a new growth sector in India making massive
progress with 76% contribution in the last quarter, followed by the mutual
funds sector. With a larger number of Indians acquiring access to financial
services, the need for the government to regulate these services and the
service providers also becomes of paramount importance. The company believes
that frameworks like the regulatory
sandbox will allow for further innovations in the fintech space, hoping the
regulators will continue seeing fintech in a different light.
The
company expects the government to introduce new incentives to widen digital
payments in India. For India to unleash the potential of fintech in banking,
collaboration and innovation between banks and fintech firms will be key in
2019. Mobile payment volume is expected to increase 10-fold by 2021. The Razorpay report also expects
that 15% of India’s GDP will be flowing through digital payments by 2020.
About
Razorpay Software Private Limited:
Razorpay,
India’s first Converged Payments Solution company, helps Indian businesses with
comprehensive and innovative solutions built over robust technology to address
the entire length and breadth of the payment journey for any business.
Established in 2014, the company provides tech payment solutions to over
350,000 businesses. Founded by alumni of IIT Roorkee, Shashank Kumar &
Harshil Mathur, Razorpay is the second Indian company to be a part of Silicon
Valley’s largest tech accelerator, Y Combinator. Marquee investors such as
Tiger Global, Sequoia India, Ribbit Capital, YCombinator, MasterCard and Matrix
Partners have invested a total of over $100 million through Series A, B & C. Around 33 angel investors including
Snapdeal, InMobi & Freecharge founders, Visa & Flipkart’s leadership
executives and internet entrepreneurs & investors Justin Kan and Tikhon
Bernstam have invested in Razorpay’s mission to simplify payments. Known to be
a developer oriented payment gateway, Razorpay focuses on essentials such as
24x7 support, one-line integration code and superior checkout experiences.
For more information, please contact:
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