Among UPI (unified payments interface) apps, Google Pay contributed 59 percent and Walmart-owned PhonePe facilitated 26 percent, followed by Paytm (7 percent) and BHIM (6 percent) in digital transactions in 2019, according to fintech firm Razorpay’s report ‘The Era of Rising Fintech.’ The report provides an in-depth study of a rapidly evolving fintech ecosystem in India and analyses the patterns of digital transactions and the impact of industry innovations, such as UPI, which are harnessing a digitally inclusive economy. In 2018, Google Pay contributed 48 percent and BHIM facilitated 27 percent in digital transactions, followed by PhonePe (15 percent) and Paytm (4 percent).
Also, Amazon Pay was the most preferred wallet among consumers (33 percent), followed by Ola Money (17 percent) in 2019. While the usage of cards (46 percent) and Net banking (11 percent) saw a decline in 2019, down from 56 percent and 23 percent respectively in 2018, UPI (38 percent) went up from 17 percent in 2018.
Also, three years old digital payments product UPI (Unified Payments Interface) continues to witness tremendous growth in India. After seeing 3X growth in transactions in 2019, UPI has overtaken credit cards as a preferred mode of payment.
“For the first time in the history of digital payments, we saw UPI overtaking cards. UPI has become the preferred choice not only for P2P (peer-to-peer) payments but also for P2M (peer-to-merchants) payments,” said Harshil Mathur, CEO, and Co-founder of Razorpay.
All the findings in this report are based on transactions held on the Razorpay platform from January 2018 to December 2019. According to the report, Bengaluru was among the most digitized city (23.31 percent), whereas Delhi, climbed up the ladder to the second spot (10.44 percent) followed by Hyderabad (7.61 percent). In 2018, Bengaluru scored 29.26 percent followed by Hyderabad (9.02 percent) and Delhi (8.36 percent).
The report further suggested that the fintech industry needs regulatory support to flourish. The regulation will help expand the digital payments infrastructure in India and startups need to invest more in local compliance rather than global launch, the report said.
Separately, in a bid to help its users recharge their FASTag accounts faster, Google Pay on Monday announced that it has added a new Unified Payments Interface (UPI) feature that will let them link FASTag accounts to the Google Pay app and recharge and track their payments. According to the company, to recharge their FASTag accounts, users need to open their Google Pay app, look for the FASTag category under the “Bill Payments” section and select the bank that has issued their FASTag.