Thursday, April 11, 2019

Pune tops in Digital Payment : Razorpay Report

Harshil Mathur

PUNE: India’s first converged payments solution company, Razorpay, launched their first edition of ‘The Era of Rising Fintech’ report in Pune. It is aimed at providing an in-depth intelligence of the agilely evolving Indian fintech ecosystem and its impact on SMEs.

The report analyses digital transaction modes, online spending patterns, impact of UPI and other game-changing industry innovations, which are taking the country a step closer towards a digitally inclusive economy.

The non-cash transactions are likely to overtake cash transactions in the country by 2023, the report indicates. Currently, SMEs in Tier 1 & 2 cities are driving a high-speed growth of 75% in non-cash transactions. Since demonetization and the launch of UPI, the demand for digital payments has increased by 70%, year on year. Chennai, NCR, Pune and Jaipur are the most active cities that are transacting digitally; Pune is leading this pack.

Here are some of the interesting findings about Pune’s adoption of digital payments from the Razorpayreport:

-      Travel (22.8%), E-commerce (7.9%) and Digital Lending (7.9%) are the top 3 sectors that contribute to Pune’s digital payments growth; Digital Lending is a relatively new entrant -  it is expected to be a $1 trillion opportunity over the next 5 years

-      Launch of UPI 2.0 during the latter part of 2018 has not only driven larger transaction volumes but also significantly increased the city’s P2M adoption

-      Driven by MDR cuts and government’s GST incentive, the city is experiencing an increased and sustained merchant acceptance

-      Pune also demonstrates a good adoption for newer payment methods such as eNACH and UPI

Overall, Pune boasts a supportive growth for the Startup ecosystem, which includes a diverse community of investors and startup incubators, as well as proximity to key business centers.

Harshil Mathur, Co-founder & CEO, Razorpay said, “With the launch of UPI and increasing access to the internet, the sky-rocketing demand for digital payments signifies a lot more than just business growth. UPI has already shown a pervasive impact on digital payments - it grew by 972% in a year. This demand and adoption are a testimony of growing trust, changing mindset of traditional businesses and focused effort of government and public authorities towards developing the fintech infrastructure. As an industry, we will need to continuously innovate to sustain this growth and address the needs of businesses.”

“During the coming months, we expect the industry to witness more game-changers like eNACH/eMandate, improved mobile-tech, more SME-oriented products and services, and stronger collaboration between the fintech services community and the banks. We have been seeing some great traction coming from Pune, especially towards the Lending sector, which is a new growth sector making some massive progress. Fintech is transforming the way Indians buy and sell, and Razorpay is thrilled to be an invaluable part of this process,” he added.

Razorpay predicts that by 2020, 40% of digital payment transactions in the country will be driven by Tier 2 and 3 businesses and consumers, and 50% of internet users will be using digital payments. The Razorpayreport also expects that 15% of India’s GDP will be flowing through digital payments by 2020. All findings in this report are based on transactions held on Razorpay platform from January, 2018 to March, 2019. 


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