The period of Covid-19 has witnessed major changes in world socially and economically. The advent of online payment apps had made transactions easy. The major online payment sites have seen a reduction in the traffic on their platforms. GooglePay saw a drop by 43% in transactions, Paytm saw 47% drop and and PhonePe dropped by 32%. Even though the platforms have dipped in transactions but still GooglePay and PhonePe remain highest contributor overall at 46% and 23% respectively. Paytm remains the lowest with only 10% share of the total.
Razorpay in its fifth edition report ‘The Era of Rising Fintech’ also mentioned that UPI is the most used mode of payment amongst others at 43%. This is followed by cards both debit and credit and net banking at 39% and 10% respectively. In the current pandemic situation, the proceeding through online payment methods have also declined in the order where UPI by 37%, Cards by 30% and net banking by 28%.
The report gave important data points on the utilisation of Fintech in different industries. While most of the industries like travel, logistics, Food and Beverage and real estate saw major dips in online transactions IT, media entertainment and software saw a massive increase in the same. The digital transactions for groceries have reduced as well to 54%.
The Fintech industry saw a dramatic pattern with an increase by 10% in beginning of lockdown which dripped down big-time. There has been a significant 30% decrease in digital payments which is a first after demonetization. This trend did give another major turning point for Fintech as the use of digital payments increased in Tier 2 and Tier 3 cities in past 30 days. Every industry is facing a new challenge in these uncertain times but this also is giving them new insights on their business.