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Razorpay launches ‘The Era of Rising Fintech’ report

Jan 22, 2020 by The Passage Team
Razorpay launches ‘The Era of Rising Fintech’ report

Harshil Mathur, Co-founder & CEO of Razorpay

Razorpay has 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.

  • 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.”

The Passage Team

The Passage is committed to creating in-depth content over technology industry across Asia with a focus on emerging startups in the technology, healthcare, education, food, tech, travel & mobility segments.

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