UPI payments being given priority, contributing more than 50 percent to all online transactions in Tier 2 and Tier 3 cities and towns
Bengaluru, April 12 (IANS)| Online transactions have seen a growth of 76 percent in the first quarter of this year. This increase has been registered in the first quarter of this year as compared to the same period in 2020. Tier 2 and Tier 3 cities and towns continued to contribute over 50 per cent of all online transactions during this period. A new report has claimed this on Monday. After a steep fall in 2020 due to the pandemic, the travel industry has grown by 50 per cent, while real estate has seen a growth of 69 per cent in the first three months of this year.
With the opening up of tourism, J&K has made it to the top 10 digitally inclusive states/UTs for the first time. Jammu and Kashmir has ranked above states like Uttar Pradesh, Madhya Pradesh and Haryana with a 36 per cent increase in online transactions in the January-March period. This has been revealed in the data presented by full-stack financial solutions company Rajorpay in its report ‘The Era of Rising Fintech’.
Payment options such as Buy Now Pay Later (BNPL) have seen a growth of 569 per cent in the last 12 months. This spurt has been witnessed with consumers preferring more economical payment modes, avoiding bulk payments. The focus continues to be on UPI payments, followed by debit card, credit card and netbanking numbers.
Vedananarayana Vedantham, Head of SME Business, Rajorpe, said in a statement, “More than 50 per cent of this digital adoption is currently coming from Tier 2 and Tier 3 cities, which shows that it is not just an urban phenomenon. Small businesses are providing new payment methods and reaching a wider customer base, which crosses geographic boundaries.”
Consumers have been increasingly ordering online over the past few months and the F&B industry has seen a 69 percent growth from January to March. “Schools, colleges and online educational institutions are increasingly accepting online payments for fees and salary payments, which shows a 40 per cent increase in online transactions,” the report said.