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Delhi takes 2nd spot in digital payments in 2019: Razorpay

Digital transactions in Delhi NCR grew by 235% from 2018 (Jan-Dec) to 2019 (Jan-Dec) and Financial Services, Food & Beverage and Transportation were the top 3 sectors which contributed a cumulative of 41% of Delhi’s online payments in 2019, said a Razorpay report.

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Last Updated: Jan 21, 2020, 06.09 PM IST
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In 2019, Karnataka saw the highest adoption of digital payments (26.64%) followed by Maharashtra (15.92%) and Delhi NCR (13.01%), the report said.
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New Delhi: With online payments in Delhi NCR growing by 235% from 2018 (Jan-Dec) to 2019(Jan-Dec), the Delhi NCR region attained the status of the third most digitised state in 2019, contributing 13.05% in 2019 (up from 10.9% in 2018), says online payments gateway Razorpay.

According to a report based on transactions on the Bengaluru-based payment solutions platform, UPI transactions in Delhi NCR grew by 442% between 2018 and 2019.

In the UPI segment, 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%), the report noted.

In 2019, there was a noticeable decline in the NPCI-backed, Bhim’s last year’s share that previously stood at 34%. The decline was mainly due to aggressive cashbacks and promotional freebies offered by competitors, observed the report.

The fintech player’s fourth edition of ‘the era of rising fintech’ report, further revealed that 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%).

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%), the report said.

Harshil Mathur, CEO & Cofounder of Razorpay said, in a statement, “While in recent times, much focus has been on financial inclusion of consumers in India, Delhi is one region which has been actively involved in working towards solving for financial inclusion for businesses. The spurt in the fintech space has given birth to a community of over 350 startups in Delhi, building intelligent solutions to address complexities, particularly in the lending sector, providing working capital loans for underserved markets like SMEs and MSMEs.”

Across India, the report by the online payments gateway revealed that digital transactions grew by 338% from 2018 (Jan-Dec) to 2019 (Jan-Dec). Also, in 2019, 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%)

Also, In 2019, 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 across the country 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, added the report.

Betting big on Indian SMEs’ financial inclusion, the digital payment gateway forecasts that by 2020, across the country, 40% of digital payments will be driven by its tier-II businesses.

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