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Thursday, July 18, 2019

Tamil Nadu ranks 4th on the list of Most Digitised States in India

Tamil Nadu ranks 4th on the list of Most Digitised States in India, grew by 35% in the last three months: Razorpay’s ‘The Era of Rising Fintech’ Report

o   Chennai stands 6th in digital payments adoption among Indian cities in Q1 (AMJ) 2019
o   Chennai’s UPI transactions grew by 57% from JFM (Jan-Feb-March) to AMJ (Apr- May-June)
o   SMEs prefer Payment Links and Payment Pages for B2B payments

Chennai, July 18th, 2019 Razorpay, India’s first converged payments solution company, launched its second edition of The Era of Rising Fintech’ report in Chennai, today. The report analyses digital transactions and aims to provide quarterly insights around how consumers and businesses transact digitally and throws light on potential game changers in payments technology. According to the report, Tamil Nadu is the 4th highest contributing state in digital transactions in the country with Chennai contributing the highest of 57% in digital transaction volume, followed by Coimbatore, Tirupur, Salem and Erode.
Here are some other interesting findings about Chennai’s adoption of digital payments from the Razorpay report. All findings in this report are based on transactions held on Razorpay platform from January to June 2019. (JFM: Jan-Feb-Mar, AMJ: Apr-May-Jun)
-         Credit and debit cards are the highest contributors in the P2M segment with an estimated share of 55%, followed by Netbanking (24%) and UPI (20%) in AMJ
-         UPI transactions have grown by 57% in the last quarter when compared to the previous quarter
-         Google Pay continues to be the most preferred UPI mode with a contribution of 72% in AMJ (grew by 59% from JFM)
-         Although PhonePe contributed 14% in AMJ, it saw the highest adoption growth of 66% since JFM
-         Top 3 sectors for digital payment growth in AMJ: Food & Beverages (31%), Gaming (13%) and Financial Services (12%). The Gaming industry witnessed a 244% growth in the last quarter due to World Cup & IPL, among other sports events
-      Top 3 sectors in JFM: Food & Beverages (36%), Financial Services (15%) and Tours and Travels (10%)
-         Chennai also demonstrates a good adoption for newer payment methods such as eNACH/ eMandates and UPI
-      Payment links and Payment Pages are increasingly becoming the preferred modes of payment for Chennai SMEs

-      Bangalore tops the list of most digitised cities followed by Hyderabad, Mumbai, Pune and Delhi
-      The top 5 states include Karnataka, Maharashtra, Delhi, Tamil Nadu and Andhra Pradesh
-      Nationally, credit and debit cards are the highest contributors in the P2M segment with an estimated share of 50% in AMJ and 56% in JFM. Usage of cards grew by 22% from JFM to AMJ
-      UPI followed the race with 34% and net-banking with 13%. UPI contribution witnessed a growth of 71% over the last two quarters
-         Google Pay continues to be the most preferred UPI app with a contribution of 57%. Although PhonePe contributed 26%, it saw the highest adoption growth of 82% since JFM. Other players, BHIM (8%) and Paytm (7%) continue to decline in UPI contribution, compared to JFM
-         Top 3 sectors for digital payment growth in AMJ: Food and Beverage (29%), Gaming industry (15%, up from 6% in JFM) and Financial Services (14%)
-      Top 3 sectors in JFM: Food and Beverage (31%), Financial services (21%) and Travels (9%)
-      Share of wallets increased by 19% from JFM to AMJ - The highest contributing wallet was Ola Money

Harshil Mathur, Co-founder & CEO, Razorpay said, “Tamil Nadu is among one of the most developed States in India and clocks about 7% GDP growth, year on year. Other than Chennai contributing the highest number of digital transactions in Tamil Nadu, we noticed that Lending is one of the upcoming growth sectors with a 69% contribution in the last quarter. With the increasing usage of UPI access to the internet, the shooting demand for digital payments implies a lot more than just business growth in Chennai. It is a testimony of growing trust, the changing mindset of traditional businesses and focused effort of government and public authorities towards developing the fintech infrastructure. In the coming months, I am certain that Chennai will create a larger impact in the digital payments ecosystem, and considering the pace at which FinTech is transforming, Razorpay is excited to be an invaluable part of this journey.”
Razorpay predicts that 40% of digital payments transaction will be driven by Tier 2 businesses & consumers by 2020. In financial services, Lending will be a new growth sector in India making massive progress with 76% contribution in the last quarter, followed by the mutual funds sector. With a larger number of Indians acquiring access to financial services, the need for the government to regulate these services and the service providers also becomes of paramount importance. The company believes that frameworks like the regulatory sandbox will allow for further innovations in the fintech space, hoping the regulators will continue seeing fintech in a different light.
The company expects the government to introduce new incentives to widen digital payments in India. For India to unleash the potential of fintech in banking, collaboration and innovation between banks and fintech firms will be key in 2019. Mobile payment volume is expected to increase 10-fold by 2021. The Razorpay report also expects that 15% of India’s GDP will be flowing through digital payments by 2020.

About Razorpay Software Private Limited:
Razorpay, India’s first Converged Payments Solution company, helps Indian businesses with comprehensive and innovative solutions built over robust technology to address the entire length and breadth of the payment journey for any business. Established in 2014, the company provides tech payment solutions to over 350,000 businesses. Founded by alumni of IIT Roorkee, Shashank Kumar & Harshil Mathur, Razorpay is the second Indian company to be a part of Silicon Valley’s largest tech accelerator, Y Combinator. Marquee investors such as Tiger Global, Sequoia India, Ribbit Capital, YCombinator, MasterCard and Matrix Partners have invested a total of over $100 million through Series A, B  & C. Around 33 angel investors including Snapdeal, InMobi & Freecharge founders, Visa & Flipkart’s leadership executives and internet entrepreneurs & investors Justin Kan and Tikhon Bernstam have invested in Razorpay’s mission to simplify payments. Known to be a developer oriented payment gateway, Razorpay focuses on essentials such as 24x7 support, one-line integration code and superior checkout experiences.

For more information, please contact:
Hepsibah Rozario  || || +91 - 8884913468
Shalini Chandrasekharan || || +91-7829212112
Aafia Feroze |||| +91- 9902491526



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