● Digital transactions in Delhi NCR grew by 235% from 2018 (Jan-Dec) to 2019 (Jan-Dec)
● Financial Services, Food & Beverage and Transportation were the Top 3 sectors which contributed a cumulative of 41% of Delhi’s online payments in 2019
● UPI transactions in Delhi NCR grew by 442% between 2018 and 2019
@ Vikas Sharma | Sr Journalist
Delhi: Razorpay, the leading full-stack financial services company, launched the fourth edition of ‘The Era of Rising Fintech’ report in Delhi today. The report provides an in-depth study of a rapidly evolving FinTech ecosystem in India. It analyses the patterns of digital transactions and the impact of industry innovations such as UPI which are harnessing this digitally inclusive economy.
Here are some interesting insights about the adoption of digital payments in Delhi NCR. All the findings in this report are based on transactions held on the Razorpay platform from January 2018 to December 2019.
Delhi (2018-2019):
– Online payments in Delhi NCR grew by 235% from 2018(Jan-Dec) to 2019(Jan-Dec)
– Delhi NCR was the third most digitised state in 2019, contributing 13.05% in 2019 (up from 10.9% in 2018)
– Credit and Debit cards were the highest contributors in the P2M (Peer-to-Merchant) segment in 2019 with an estimated share of 64%, followed by UPI (20%) and Netbanking (15%)
(2018: Cards: 62%, Netbanking: 22% and UPI: 12%)
– UPI started to gain a larger share in online payments with a surging growth of 442% in 2019
– Google Pay continued to be the most prefered UPI app with 50% of the market share in 2019, followed by PhonePe (25%), BHIM (12%) and Paytm (9%). (2018: Google Pay – 39%, BHIM – 34%, PhonePe -14% and Paym – 6%)
– With a contribution of 5% in 2018, the contribution of the Financial Services sector more than doubled (12%) in 2019, emerging as one of the top three industries in Delhi; the top two sectors in 2019 were Food & Beverage (15%) and Transportation (14%)
(2018: Food & Beverage – 25%, Tours & Travels – 23% and Utilities – 12%)
– Interestingly, over the last one-and-a-half years, traditional sectors such as Insurance and Mutual Funds have been embracing online methods for payment acceptance. In 2019, of the 12% growth in the Financial Services sector, 80% share came from online lending, 14% from insurance and 5% from mutual funds
(2018: Lending – 66%, Insurance – 16% and Mutual Funds – 13%)
– UPI has been dominating payment modes such as Netbanking and Wallets. The contribution of Netbanking declined from 22% in 2018 to 15% in 2019 and Wallets from 3% in 2018 to 2% in 2019. The most preferred wallets in Delhi in 2019 were Ola Money (27%), Amazon Pay (25%) and Mobikwik (12%)
(2018: Freecharge – 39%, Ola Money – 22% and Mobikwik – 18%)
India (2018-2019):
– Digital transactions grew by 338% from 2018 (Jan-Dec) to 2019 (Jan-Dec)
– In 2019 (Top cities), Bangalore was the most digitised city (23.31%), whereas Delhi, climbed up the ladder to the second spot (10.44%) followed by Hyderabad (7.61%). (2018: Bangalore 29.26%, Hyderabad 9.02% and Delhi 8.36%)
– In 2019 (Top states), Karnataka saw the highest adoption of digital payments (26.64%) followed by Maharashtra (15.92%) and Delhi NCR (13.01%)
– While the usage of Cards (46%) and Netbanking (11%) saw a decline in 2019, down from 56% and 23% for cards and Netbanking respectively in 2018, UPI (38%) went up from 17% in 2018
– Amazon Pay was the most prefered wallet among consumers (33%), followed by Ola Money (17%) in 2019
– The top 3 sectors in digital payment adoption for 2019 were Food and Beverage (26%), Financial Services (12.5%) and Transportation (8%)
(2018: Food & Beverage – 34%, Tours & Travel – 19%), Utilities – 9%)
– Among UPI, Google Pay contributed 59%, PhonePe contributed 26%, followed by Paytm (7%) and BHIM (6%) in digital transactions in 2019
(2018: Google Pay – 48%, BHIM – 27%, PhonePe – 15%, Paytm – 4%)
Harshil Mathur, CEO & Co-founder of Razorpay said, “The last year has been buzzing for the Fintech sector in Delhi, with the adoption of new digital payment modes and bringing the digital currency to the mainstream. And the last six months saw a tremendous shift in the consumption patterns of businesses and consumer preferences of digital payments in the region. With UPI growing by a whopping 442% in Delhi, I am certain that this payment method will overtake cards by at least 20% in the next 12 months.”
He added, “While a lot of focus has been on financial inclusion of consumers in India, Delhi is one region which has been actively involved in working towards solving for financial inclusion for businesses. The spurt in the fintech space has given birth to a community of over 350 startups in Delhi, building intelligent solutions to address complexities particularly in the lending sector, providing working capital loans for underserved markets like SMEs and MSMEs. The growth of fintech in Delhi is expected to multiply by three-fold this year, and given how Delhi has been demonstrating a collaborative ecosystem, exploring new possibilities through partnerships between banks and fintech firms, we believe that this will be a real and an exciting dream to achieve.”
In the last six months, Razorpay has been expanding its horizons in payments and banking and solving new challenges for ambitious businesses wanting to disrupt the Indian economy. In line with its neobanking strategy, Razorpay launched Current Accounts to support standard banking features like Debit Cards, Cash transfers, FD, RD and other treasury offerings, and Corporate Credit Cards to solve challenges around access to credit, short term credit, reconciliation, expense filing therefore helping businesses lead a healthy financial life. The company also acquired Opfin, a Payroll and HR Management Software company, to solve for seamless automation of a business’s entire payroll process. With a 500% growth in 2019, Razorpay expects a 4x growth in its volumes by the end of the next fiscal year.
