Online transactions and digital payments in the first quarter of this year saw a growth of 76 percent in the first quarter of 2010 as compared to 2020, as tier 2 and 3 cities and towns continued to contribute over 50 percent of all online transactions, a new report said on Monday. After seeing a steep decline in 2020 owing to the pandemic, the travel industry grew by 50 percent while real estate was up by 69 percent in the first three months of this year.
As tourism opened up, Jammu and Kashmir made it to the top 10 ‘Digitally Inclusive States/Union Territories for the first time, with a growth of 36 percent in online transactions in the January-March period, ranking above Uttar Pradesh, Madhya Pradesh, and Haryana, according to data provided by full-stack financial solutions company Razorpay in its ‘The Era of Rising Fintech’ report.
Payment options such as Buy Now Pay Later (BNPL) saw a whopping growth of 569 percent in the last 12 months, owing to consumers avoiding bulk payments and preferring affordable payment modes.UPI continues to be the preferred payment option followed by debit cards, credit cards, and net banking.
“Over 50 percent of this digital adoption is coming from Tier 2 & 3 cities today, which indicates that this is not just an urban phenomenon. Small Businesses are providing newer payment methods and reaching out to a wider customer base that transcends geographical boundaries,” said Vedanarayan Vedantham, Head of SME business, Razorpay.
In the last few months, consumers have increasingly been ordering online and the F&B industry witnessed a growth of 69per cent from January to March.” Schools, colleges, and online educational institutes have increasingly been accepting online payments for fees and salary payments, reflecting a 40 percent growth in online transactions,” the report mentioned. (IANS/JC)