Bengaluru tops the list of most digitised cities followed by Hyderabad, Mumbai, Pune, Delhi and Chennai, according to a report.
Payments solution company Razorpay on Thursday launched its second edition of ‘The Era of Rising Fintech’, in which it analyses digital transactions and aims to provide quarterly insights around how consumers and businesses transact digitally.
The report also throws light on potential game changers in payments technology.
According to the report, Karnataka is the highest contributing state in digital transactions in the country, followed by Maharashtra, Delhi, Tamil Nadu and Andhra Pradesh.
Tamil Nadu is the fourth highest contributing state in digital transactions in the country with Chennai contributing the highest of 57% in digital transaction volume, followed by Coimbatore, Tirupur, Salem and Erode.
All findings in the report are based on transactions held on Razorpay platform from January to June 2019.
Nationally, credit and debit cards are the highest contributors in the P2M (person-to-merchant) segment with an estimated share of 50% in AMJ and 56% in JFM. Usage of cards grew by 22% from JFM (Jan-Feb-March) to AMJ (April-May-June).
Razorpay predicts that 40% of digital payments transaction will be driven by Tier 2 businesses and consumers by 2020. In financial services, lending will be a new growth sector in India making massive progress with 76% contribution in the last quarter, followed by the mutual funds sector.
The company expects the government to introduce new incentives to widen digital payments in India. For India to unleash the potential of fintech in banking, collaboration and innovation between banks and fintech firms will be key in 2019. Mobile payment volume is expected to increase 10-fold by 2021. The Razorpay report also expects that 15% of India’s GDP will be flowing through digital payments by 2020.