Digital transactions have grown by 80 per cent in the last 250 days in India and the home services industry (such as carpentry, plumbing and more) has started to embrace digital payments, making transactions grow by a mighty 138 per cent, a new report showed on Monday.
Businesses, especially from tier 2 and 3 cities, have been a major boost for digital payments exhibiting a growth of 40 per cent from the first 250 days (March 25, 2020 to November 29, 2020) and the next 250 days (November 30, 2020 to August 6, 2021), according to the report by full-stack financial solutions company Razorpay.
"What makes me really happy is the fact that not a single sector showed negative growth in the last 250 days. This was possible because businesses have recognised the crucial importance of using new payment technologies to support and improve their business growth," said Harshil Mathur, CEO and Co-Founder of Razorpay.
While every sector and payment mode took a hit in the start and online payments declined by 30 per cent in early 2020, the ecosystem of small businesses, fintech companies and banks came together and today digital transactions have grown significantly.
Demand for payment options like Buy Now Pay Later (BNPL) has been mounting and displayed a towering growth of 220 per cent.
"The digital transactions by freelancers and homepreneurs saw a growth of 69 per cent during the last 250 days, showing how this time has made people give their interests a successful entrepreneurial twist," the report showed.
Direct-to-Consumer (D2C) businesses witnessed a growth of 87 per cent during the last 250 days as compared to the first 250 days of the national lockdown.