- Maharashtra and Karnataka account for 40% of the country’s transactions; Maharashtra for 25%
- Record of 8 minutes of transactions processed in a single day on the PayU platform
NEW DELHI, 22 November 2021 / PRNewswire / – PayU, india first online payment solutions provider unveiled PayU Insights Report – Festive Edition today, a comparative analysis between digital transaction trends during the holiday season 2020 and 2021.* The Indian holiday season is a measure of consumer buying sentiment, and this report maps changes in demand across all categories.
Strong sales through retail and e-commerce channels and suppressed massive demand led to a rebound in consumer appetite; Registered PayU a record of 8 million transactions in a single day. Consumers are increasingly comfortable buying large items online. During the holiday season 2021, average spend increased by 52% while overall transactions processed by PayU increased by 17% compared to 2020. PayU is a pioneer in creating added value for merchants and retailers. banks with insight into data, delivering targeted solutions that enable them to deepen customer engagement and create actionable business strategies.
Maharashtra, Karnataka, Tamil Nadu, Delhi and West Bengal drive digital payment adoption
The aforementioned states posted the highest spending through digital payments, with Maharashtra and Karnataka representing 24.5% and 14.8% of the total expenditure processed. Bombay accounted for 20% of total spending this season, Bangalore for 13%, Delhi for 7%, Calcutta and Hyderabad both for about 5%. Among small towns, Jaipur, Coimbatore, Vijaywada, Pune has shown an increase in digital payment volumes. Bhubaneshwar and Surat also made their debut in the Top 15 cities this year (Basic data available; location data is not available for all transactions).
Travel and tourism sectors revitalized
Travel and hospitality saw an increase of 105% more users transacting in the 2021 holiday season, compared to last year. This could be attributed to the relaxation of travel standards and the positive impact of mass vaccination. India showed a good appetite for travel, as total spending and total number of transactions increased by 61% and 67%, respectively, compared to the holiday season 2020. This was clearly manifested in increased demand for different types of transport.
For Airlines companies, total spending increased 109%. The trains was a preferred mode of travel with a 250% increase in the total number of transactions and a 200% increase in total expenses. This could be because more consumers have chosen public transport for interstate travel, after large-scale vaccination campaigns in different states. Travel by taxi and self-driving options increased during the holiday season 2021, with a 271% growth in the number of transactions and a 111% growth in spend. Consumers may prefer car rentals and carpooling options for weekend getaways and short trips. Vacation Packages received a boost with a record growth of 200% in spend processed per day.
Appetite for financial services grows
Across all BFSI categories, consumers were making larger transactions as the number of transactions increased slightly, but spending increased to two and three digits. While the major companies launched IPOs in October, investments via trading and wealth management platforms gained momentum, growing 431% in total spend processed per day.
In Bank and insurance, spending via digital modes increased by 109%. Interestingly, consumers have also shown a penchant for debt reduction as total spending for credit repayments increased by 50% while the number of transactions increased by 23%.
Films are enjoying a massive recovery
In the entertainment industry, digital payments for films and events saw a surprise recovery with 264% growth in total transactions and 469% growth in total spend processed. The increase comes against the backdrop of the gradual reopening of public theaters and auditoriums after the second wave of the COVID-19 pandemic.
UPI dominates payment methods, debit cards decline
Payment by credit card saw a 66% increase in spending and a 30% increase in the number of transactions. However, payment by debit cards was down, with spending and the number of transactions dropping by 13% and 18% respectively. UPI was the second most popular payment method and saw a 104% increase in total spend and 72% increase in total transactions.
Commentary on the PayU Insights Report – Festive Edition, Hemang Dattani, Data Intelligence Manager, PayU, noted, âThe 2021 holiday season has been unique in several ways. Following conservative sentiments after the second wave, businesses and consumers have shown a more robust and optimistic consumer environment. Online shopping festivals hosted by major retailers Online, a positive market recovery and relaxed travel and public events guidelines have boosted digital payments across all key industries. Additionally, what we’re seeing across all categories is greater confidence in high spending, which is a good sign for the economy and brings us closer to digital India.
*The report compares trends in digital payment transactions between the holiday season 2020 (October 10 – November 10) and the holiday season 2021 (October 1 – October 31).
**Results are based on transactions on the PayU platform
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 India aims to create a comprehensive digital financial services platform to meet all the financial needs (exploited and untapped) of customers (merchants, banks and consumers) through technology. PayU provides payment gateway solutions to online businesses using its cutting edge and award winning technology. In India, PayU serves over 350,000 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.
SOURCE PayU India