- Donations to social causes see massive 731% transaction growth and 2,308% spending growth during Lockdown 2.0 vs. Pre-Lock 2.0
- The number of retail and e-commerce transactions increased by a record 260% in Lock 2.0 vs. Lock 1.0
- The number of transactions through UPI saw phenomenal growth of 320% in Lock 2.0, compared to Lock 1.0
- Consumers are more ready to embrace digital payments in Lock 2.0 compared to Lock 1.0
NEW DELHI, June 24, 2021 / PRNewswire / – PayU, india leading provider of online payment solutions, today released the PayU Insights report, providing a comparative analysis of lockdown periods in 2020 and 2021, as evidenced by changes in digital payment transactions on the platform. The report provides an overview of the impact across all sectors as well as an overview of the Indian digital payments space. From year to year there has been a 52% increase in the number of transactions and 76% increase in expenses (May 2020 vs. May 2021). Compared to the months before the lockdown, there was a 10% increase in the number of transactions after the 2021 lockdown and a 21% decrease in the average ticket size, indicating that users are adopting online payments even for smaller transactions. PayU is a pioneer in creating added value for merchants and banks through data insights, delivering targeted solutions that enable them to deepen customer engagement and create actionable business strategies.
Online donations to charitable causes hit record high in Lockdown 2.0
Digital payments for charitable causes have seen a rise massive 731% increase in the number of transactions, 2308% increase in spend and 128% increase in average ticket size compared to the pre-lockout months in 2021. Compared to Lock 1.0, the number of transactions and expenses increased by 575% and by 476% in Lock 2.0. As the second wave of the COVID-19 pandemic unfolded, numerous fundraising campaigns were organized by NGOs and crowdsourcing platforms to raise funds for COVID relief.
Logistics is gaining momentum, with partial and phased blockages
In containment 2.0, the logistics sector recorded a 217% increase in the number of transactions and a 227% increase in spending, compared to locking 1.0. Interestingly, the logistics industry also maintained a steady 59% growth in the number of transactions and a 57% increase in spend from the months before Lockdown 2.0. This could be attributed to greater use of courier delivery services and the purchase and transfer of essential items during the May 2021 period. It’s also possible that incentives announced in Budget 2021, such as the program to boost digital payments, may have improved feelings for the industry.
Entertainment, the game is slowing down
The entertainment industry has suffered from the impact of the second wave of the pandemic as there has been a 35% drop in the number of transactions, a 41% drop in spending and an 11% drop in the average ticket size in containment 2.0 vis a vis pre-containment 2.0.
The gaming industry has also shown a complete trend reversal, with healthy growth in 2020 but declining in 2021. During Lockdown 2.0, the number of transactions and spending decreased by a significant 63%, compared to the months before the lockdown. While in Lockdown 1.0 there had been an increase in the number of transactions. This could be because consumers moved away from non-essential spending, the 2021 IPL cancellation, and general sentiment muted during this phase.
The UPI juggernaut continues
Lockdown 2.0 has seen phenomenal growth for UPI as a payment method. the the number of transactions through UPI increased by 320% and spending increased by 306% in Lock 2.0, compared to locking 1.0. The second highest growth in payment methods was seen in credit card transactions, with the number of transactions increasing 87% and spending increasing 69% year on year. For net banking and debit card modes, the number of transactions increased by 12% and 6% respectively over one year.
Impact on travel
the the number of transactions increased by 186% and expenses by 125% between containment 1.0 and 2.0. This is understandable, as travel increased once the economy opened and restrictions eased during a phased lockdown. However, immediately after the 2021 lockdown, there was a 65% drop in transactions and a 78% drop in spending.
Commenting on the PayU Insights report, Hemang Dattani, Head – Data Intelligence, PayU said, “In general, businesses and consumers were better prepared to meet the demands of the foreclosure in 2021. As the foreclosure was phased and geographically restricted, the growth of digital payments has been steady, especially for industries like retail, logistics and pharmacy. A leader in online payments, PayU is well positioned to capture macroeconomic movements and offers solutions based on industry specific information, enabling merchants to glean actionable insights and improve their trading strategies. “
Other findings from the PayU Insights report
- Pharmacy: The number of transactions increased by 78% and spending by 31% during the 2021 lockdown, compared to the months before the lockdown. Year over year, the number of transactions was down 9% and expenses were down 22%.
- Retail and e-commerce: Compared to containment 1.0, the number of transactions increased by 260% and spending by 235%, year over year. There was a 36% increase in the number of transactions and a 25% increase in spending during Lockdown 2.0 compared to the months before the lockdown in 2021.
- Races: Year over year, the number of transactions increased 171%, with spending growing 108%. There was a 52% increase in the number of transactions after Lockdown 2.0, compared to the months before the lockdown in 2021.
- Education: Compared to containment 1.0, although the number of transactions decreased by 31%, expenses increased by 37% in containment 2.0.
- Charging and payments of utilities: Compared to pre-containment 2.0, the number of transactions increased by 68% and expenses by 11%.
* Lockdown 2.0 refers to the period of May 2021
* Pre-containment 2.0 refers to the period of March 2021
* Lock 1.0 refers to the period of May 2020
About PayU India
PayU, india leading provider of online payment solutions, is regulated by the Reserve Bank of India and has advanced solutions to meet the digital payment needs of the Indian market.
PayU provides payment gateway solutions to online businesses using its cutting edge and award winning technology. In India, PayU serves over 450,000 merchants with over 100 local payment methods and is the preferred payment partner of nearly 60% of online merchants, including all major e-commerce companies and the majority of airlines.
PayU also developed LazyPay in 2017, an alternative lending platform to offer credit solutions such as Small Ticket Credit (Buy Now Pay Later), app-based loans (instant personal loans) and point-of-sale credit. sale (Merchant EMI). LazyPay Buy Now Pay Later is currently live at over 100 merchants such as Byju’s, Swiggy, Flipkart, Makemytrip, Dunzo, Vodafone, Zomato, Bookmyshow, Oyo, Tata Sky and many more.