A study conducted by Razorpay, a payments solution company, revealed that the southern states of Karnataka, Tamilnadu, and Andhra Pradesh had fared better when it comes to digital payments in the country. The top five most digitised states are; Karnataka, Maharashtra, Delhi, Tamilnadu, and Andhra Pradesh.
No North Indian state with full statehood features in the top-five, and it speaks of the advancements made in the southern states. Coming to the cities, no surprise to see Bengaluru, the IT capital of India, topping the list followed by Hyderabad and Mumbai while Pune and Delhi are not too far behind.
The study also said that the credit and debit card payments stood at 50% in the pay to merchant section in April, May, and June while the number was a little higher at 56% in January, February, and March. The Unified Payments Interface (UPI) contributes about 34% while net-banking pitched in with 13%. The UPI has grown at a massive rate of 71% in the latest two quarters.
The debit and credit cards usage saw an increase of 22% in April, May, and June when compared to that of January, February, and March. The top sectors contributing towards the digital payments growth in the last quarter are food and beverage (29%), gaming (15%), and financial services (14%).
Razaorpay has predicted that by 2020, 40% of the digital payments be made by tier-II consumers and businesses. Lending and mutual funds are expected to be the next sectors of financial services that will see significant use of technology.
As the Indians are slowly getting used to digital transactions, it is inevitable for the government to regulate the services and service providers. Collaboration between the banks and FinTech plays a crucial role in driving the Indian financial sector to go completely digital.