Maharashtra & Karnataka explain 40% of country’s transactions; Maharashtra for 25% Record of 8mn transactions processed in single day on PayU platform NEW DELHI, Nov. 22, 2021 /PRNewswire/ — PayU, India’s leading online payment solutions provider unveiled PayU Insights Report – Festive edition today, a comparative examination between digital transaction trends in Festive Season 2020 and 2021.* The Indian festive season is a measure of consumer buying sentiment, and this report maps changes in need across categories.
Strong sales on retail and e-commerce channels and enormous pent-up need resulted in consumer appetite rebounding; PayU registered a record high of 8 million transactions on a single day. Consumers are getting much more comfortable shopping for large ticket items online. In Festive Season 2021, average spends have increased by 52% while overall transactions handled by PayU increased by 17% compared to 2020. PayU is a pioneer in driving value addition for merchants and edges by data insights, offering targeted solutions which allow them to deepen customer engagement & create actionable business strategies.
Maharashtra, Karnataka, Tamil Nadu, Delhi and West Bengal excursion digital payment adoption
The above-mentioned states showed highest spending by digital payments, with Maharashtra and Karnataka accounting for 24.5% and 14.8% of total spends processed. Mumbai accounted for 20% of total spends this season, Bangalore for 13%, Delhi for 7%, Kolkata and Hyderabad both for approximately 5%. Among smaller cities, Jaipur, Coimbatore, Vijaywada, Pune showed increased volumes of digital payments. Bhubaneshwar and Surat also made their way into Top 15 cities this year (Basis obtainable data; location data not obtainable for all transactions).
Travel and tourism sectors revitalized
Travel and hospitality saw an increase of 105% more users transacting in Festive season 2021, compared to last year. This could be credited to relaxation of travel norms and positive impact of mass vaccination. India showed healthy appetite for travel as total spends and total number of transactions grew by 61% and 67%, respectively, compared to Festive Season 2020. This was clearly seen in increased need for different types of transport.
For airlines, total spends increased by 109%. Trains was a preferred mode of travel with 250% increase in total number of transactions and 200% increase in total spends. This could be because larger number of consumers chose public transport for inter-state travel, after large-extent vaccination drives in different states. Travel by cabs and self-driving options increased during Festive season 2021, with 271% growth in number of transactions and 111% growth in spends. It could be that consumers preferred car rentals and ride-hailing options for weekend getaways and short trips. Holiday packages received a raise with record 200% growth in spends processed per day.
Appetite for financial sets grows
Across BFSI categories, consumers were making larger transactions, as the number of transactions showed mild increase but spends increased in double & triple digits. As leading companies issued IPOs in October, investments by trading and wealth management platforms attained momentum, with 431% growth in total spends processed per day.
In Banking and Insurance, the spends by digital modes increased by 109%. Interestingly, consumers also showed penchant for debt reduction as total spends for credit repayments increased by 50% while number of transactions increased by 23%.
Movies see enormous recovery
In the entertainment sector, digital payments for movies and events had a surprise recovery with 264% growth in total number of transactions and 469% growth in total spends processed. The uptick comes on the backdrop of gradual re-opening of public theatres and auditoriums post second wave of COVID-19 pandemic.
UPI dominates payment modes, debit cards decline
Payment by credit cards saw a 66% increase in spends and 30% increase in number of transactions. However, payment by debit cards saw a decline as both spends and number of transactions decreased by 13% and 18%, respectively. UPI was the next most popular mode of payment and witnessed 104% increase in total spends and 72% increase in total number of transactions.
Commenting on the PayU Insights Report – Festive Edition, Hemang Dattani, Head- Data Intelligence, PayU, said, “Festive Season 2021 was rare in several ways. After conservative sentiments post the second wave, businesses and consumers alike showed a more strong and optimistic consumption ecosystem. Online shopping festivals organized by leading e-retailers, positive recovery in markets, and relaxed guidelines on travel and public events spurred digital payments across meaningful sectors. Also, what we are seeing across categories is greater confidence in spending large amounts, which is a great sign for the economy and takes us closer to becoming Digital India.”
*The report compares digital payment transaction trends between Festive Season 2020 (10th Oct – 10th Nov) and Festive Season 2021 (1st Oct – 31st Oct).
**Findings are based on transactions on PayU platform
About PayU India
PayU, India’s leading online payment solutions provider, is regulated under the save Bank of India and has progressive solutions to meet the digital payment needs of the Indian market. PayU India aims to create a complete-stack digital financial sets platform to serve all (tapped and untapped) financial needs of customers (merchants, edges and consumers) by technology. PayU provides payment gateway solutions to online businesses by its cutting-edge and award-winning technology. In India, PayU serves more than 3,50,000 merchants with 100+ local payment methods and is the preferred payments partner for nearly 60% of the e-commerce merchants, including all leading e-commerce companies and a majority of airline businesses.
PayU also developed LazyPay in 2017, an alternate lending platform to offer credit solutions such as Small Ticket Credit (Buy Now Pay Later), App-based loans (moment personal loans) and Point of Sale Credit (Merchant EMI). LazyPay Buy Now Pay Later is currently live on 100+ merchants such as Byju’s, Swiggy, Flipkart, Makemytrip, Dunzo, Vodafone, Zomato, Bookmyshow, Oyo, Tata Sky and many more.
This Press Release has not been vetted or endorsed by The Eastern Herald’s editorial staff.
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