Digital transactions have grown by 80 percent 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 percent.
Businesses, especially from Tier II and III cities, have been a major boost for digital payments exhibiting a growth of 40 percent 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 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 recognized 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 percent 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 percent.
"The digital transactions by freelancers and homepreneurs saw a growth of 69 percent 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 percent during the last 250 days as compared to the first 250 days of the national lockdown.