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40% of Digital Payments will be Driven by Tier 2 Businesses and Consumers by 2020: Razorpay | ||
Bangalore, Karnataka, India
Razorpay, India’s first converged payments solution company, launched the second edition of its compelling report, ‘The Era of Rising Fintech’ today. It provides an in-depth study of the fast evolving Indian fintech ecosystem that is entering a new phase of innovation. The report analyses digital transactions, how businesses transact online, the impact of UPI and other game-changing industry innovations which are taking the country a step closer towards a digitally inclusive economy.
Here are some of the interesting findings from Razorpay’s 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)
Harshil Mathur, Co-founder & CEO, Razorpay said, “India has embraced the digital transformation in a significant way. A remarkable growth of 382% in digital transactions over the past year, signifies a lot more than just business growth. This is a true testament of trust, the changing mindset of customer and business, and increased adoption of fintech innovation. UPI with 71% growth is now recognised as the de-facto mode for online payments, both by consumers and businesses and I believe it will continue to lead the way with more customised offerings and features to drive financial inclusion. It is also interesting to note that the customer demand and innovation in digital payments for Sports events is growing, World Cup & IPL among others doubled the share of gaming industry’s contribution from 6% to 15% in the last three months.”
“Fintech is transforming the way Indians transact online, not just buying and selling products and services but also consuming content and Razorpay is thrilled to be an invaluable part of this journey,” he added.
Razorpay predicts that 40% of digital payments 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 3,50,000 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, Y Combinator, 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. |
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