2021 - Rise in Digital Payments

2021 has recorded an interesting rise in digital payment

If 2020 was the year belong to the adoption of digital payments. Then for sure, 2021has to be the year where individuals will be utilizing the most benefits from it. As per reports, the digital payment system has grown up by 104%. Therefore, it means that from 2020, the value of digital payment has got doubled. In the year 2021, every small to big sector has gained equal growth and opportunities with the contributions of food and beverage with a rate of 18.8%. Amongst many technological upheavals that happened in the year 2020. The rise of the digitalized economy is one of the most important disruptions that happened. Since then the trend of digital payment had eventually arisen.

Meanwhile, on one hand, customers especially the younger ones are spending more through the buy now pay later system. This is one of the most user-friendly financial products ever arose for the young generation. On the other hand, customers are also looking for the saving option through investing in mutual funds and involving in active trading. The first phase of digital migration first happened with the brands such as the D2C brand. While the second wave arises when traditional business starts offering their services through a digital medium. Experts believe that this migration to the digital world will provide a detailed view of the fintech ecosystem and the digital spending pattern of the customers including youth.

Therefore, nowadays almost every household transaction is done online only. Digital transactions from telecom and electricity bills had seen an growth of about 3640% and 2353%. Same way lifestyle and fashion have also contributed a lot tothe digital transaction in the year 2020. But groceries being on top saw a growth of 233% in the year 2021. Even digital transactions for health and fitness have also seen a surge of 611% in the year 2021. Also, as more and more people are choosing freelancing services, the digital payment got increased there as well by 769.86%. Therefore, it’s nothing wrong in saying that digital payments are now accepted everywhere irrespective of industry and sector.

The user rate of BNPL products has also seen a surge of 637.27% in 2021 directly from 569% from 2020. Hence, it can be said that along with digital payment, BNPL is also increasing as the payment medium at a massive rate. Even other financial products are also contributing something to establishing India as the economy of digital payment. Hence, it can be concluded that online payment has surely got doubled in 2021, and all because of the digital migration of the economy.

Source: Razorpay