Digital transactions have grown by 80% in the last 250 days in India and the home services industry (such as carpentry, plumbing and more) has started to embrace digital payments, making transactions grow by a mighty 138%, a new report showed on Monday, August 9.
Businesses, especially from tier 2 and 3 cities, have been a major boost for digital payments exhibiting a growth of 40% from the first 250 days (March 25, 2020 to November 29, 2020) and the next 250 days (November 30, 2020 to August 6, 2021), according to the report by full-stack financial solutions company Razorpay.
"What makes me really happy is the fact that not a single sector showed negative growth in the last 250 days. This was possible because businesses have recognised the crucial importance of using new payment technologies to support and improve their business growth," said Harshil Mathur, CEO and Co-Founder of Razorpay.
While every sector and payment mode took a hit in the start and online payments declined by 30% in early 2020, the ecosystem of small businesses, fintech companies and banks came together and today digital transactions have grown significantly.
Demand for payment options like Buy Now Pay Later (BNPL) has been mounting and displayed a towering growth of 220 %.
"The digital transactions by freelancers and homepreneurs saw a growth of 69 % during the last 250 days, showing how this time has made people give their interests a successful entrepreneurial twist," the report showed.
Direct-to-Consumer (D2C) businesses witnessed a growth of 87 % during the last 250 days as compared to the first 250 days of the national lockdown.
Meanwhile, another indicator of adoption of online payment medium, Reserve Bank of India's Digital Payment Index also increased sharply. After moving at a moderate pace over the years, the index has jumped sharply 30% between March 2020 and March 2021.