Bengaluru, Delhi, and Hyderabad ranked as the top three cities in terms of peer-to-merchant digital payments in the country and cumulatively accounted for over 40 percent of such transactions in 2019, a report by Razorpay said on Tuesday.
According to the Razorpay report, digital transactions are estimated to have grown by 338 percent from 2018 to 2019.
Bengaluru accounted for 23.31 percent of the peer-to-merchant transactions, while Delhi contributed 10.44 percent and Hyderabad 7.61 percent of such transactions in 2019, as per the fourth edition of 'The Era of Rising Fintech' report.
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Karnataka saw the highest adoption of digital payments (26.64 percent), followed by Maharashtra (15.92 percent), and Delhi NCR (13.01 percent), it added.
Interestingly, the usage of cards declined to 46 percent in 2019 from 56 percent in 2018, and netbanking fell to 11 percent from 23 percent in 2018. UPI, on the other hand, grew to 38 percent in 2019 from 17 percent in the previous year.
Among UPI, Google Pay contributed 59 percent, PhonePe contributed 26 percent, followed by Paytm (seven percent) and BHIM (six percent) in digital transactions in 2019. Amazon Pay was the most preferred wallet among consumers (33 percent), followed by Ola Money (17 percent) in 2019.
Owing to the growth of UPI, share of wallets continue to decline despite the increase in the number of transactions, the report said.
The top three sectors in digital payment adoption for 2019 were food and beverage (26 percent), financial services (12.5 percent) and Transportation (8 percent), the report said.
"The year 2019 was buzzing for the fintech sector with adoption of new digital payment modes and bringing the digital currency to the mainstream. The last six months saw a tremendous shift in the consumption patterns of businesses and consumer preferences of digital payments," Harshil Mathur, CEO and Co-founder of Razorpay, said.
Earlier in July 2019, the Parliament was informed that the digital transactions in the country surpassed the target set by the government, clocking a total volume of 3,133.58 crore in 2018-19 and is showing a positive trend for the financial year.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Megha Reddy)