- For games and entertainment, the number of transactions carried out at night increased by 34%
- Edtech notes a 78% increase in the number of transactions; 44% increase in spending in 2020
- Northeastern states have seen huge increase in digital adoption
NEW DELHI, April 20, 2021 / PRNewswire / – PayU, From India leading provider of online payment solutions, has mapped the impact of COVID-19 and the lockdown, as shown by the year-to-year changes in digital payments. The pandemic has dramatically boosted online payments, as shown by the 24% increase in the number of transactions and 23% in spending on the PayU platform year on year. Interestingly, during the holiday season (October-December 2020) There was a 45% peak in the number of online transactions compared to the same period of the previous year. In line with this trend, PayU processed nearly 100 million transactions in a single month during the holiday season (October 15-November 15, 2020).
the the number of UPI transactions increased by 288% and spending through UPI increased phenomenal 331% between 2019 and 2020.
INDOOR ENTERTAINMENT GETS A BOOST
As theaters and offline entertainment avenues remained closed, consumers turned to indoor entertainment. the OTT segment witnessed an incredible 144% increase in the number of transactions and 139% increase in spending between 2019 and 2020. The the game segment experienced a phenomenal 100% increase in spend and 154% increase in average ticket size between two years. The increase in ticket sizes, despite the decrease in the number of transactions, could be due to the fact that consumers have moved from several small transactions to large single transactions, with gambling becoming a permanent feature of the way of life. For games and entertainment, the the number of transactions carried out at night increased by 34% while the number of transactions carried out during the day decreased by 11% in 2020 compared to 2019, an indication of increased reliance on indoor entertainment while working from home.
DECELERATION OF TRAVEL AND FOOD WITNESSES
Travel and hospitality are among the most affected sectors with a 86% decrease in the number of transactions and expenses between the pre and post-COVID quarters (January-March vs April-June 2020). Compared to ’19, there was a 46% decrease in the number of transactions and a 52% decrease in spending in ’20.
The impact of the pandemic on online food aggregators has been mixed. While the the number of transactions decreased by 28%, expenses increased by 22% and the the average ticket size increased by 71%. Perhaps this is because, although fewer orders were placed, consumers preferred to shop at more expensive and branded grocery stores, which could ensure hygiene.
INDIA UPSKILLS, EDUCATION IS ONLINE
Edtech emerged as a winner, with a 78% increase in number of transactions and one 44% increase in spending, during this period. The most likely explanations are the upgrading of the skills of professionals while they were working from home and the shift of students to online education. In fact, the number of transactions for edtech increased by an incredible 69% immediately after locking (April-May 2020 vs January-March 2020). Although the edtech segment has experienced growth, the average ticket size reduced by 19%, perhaps as course prices fell in response to surging demand.
NORTHEAST STATES SEE ACCELERATED DIGITIZATION
India saw increased digital activity as small merchants and consumers went online, but most increase in the number of transactions was seen in From India Northeastern States – Nagaland (93%), Meghalaya (82%), Manipur (74%), Arunachal Pradesh (66%) and Tripura (63%).
THE PANDEMIC IS INCREASING TRADE AND RETAIL
In retail and e-commerce segments,there was a huge 106% increase in the number of transactions and 124% increase in expenses Between the first and last six months of 2020. The most likely explanations are increased adoption by Indians, including older users and small town consumers, to enforce social distancing standards. It could also explain the 115% increase in number of transactions and one 126% increase in spending between the period of October to December in 2019 and 2020, with Indians mainly doing their festive shopping online.
PROTECT AGAINST RISKS
The number of transactions for financial services (loans, insurance and investments, etc.) increased by 26% and expenses by 31% from year to year. In particular, Iinvestments and insurance saw a 59% increase in the number of transactions and spending increased by 53% as consumers sought protection against risk in uncertain times.
Commenting on the analysis report, Hemang Dattani, Head of Data Intelligence, said PayU, “As a leader in the Indian digital payments industry and a preferred partner for From India Largest online businesses, PayU has a unique perspective to capture the ever-changing trends from year to year. It 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. PayU is committed to partnering with merchants to facilitate the adoption of digital infrastructure. “
About PayU India
PayU, From 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 e-commerce 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 ( 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.