People adopt digital payments like a shot

Pandemic has accelerated the trend of cashless societies even in the rural area like no other event, as per Razorpay report the Digital payments has gone up by 76% in the past one year.

If it were not for pandemic, it might have taken 3-4 years to scale up to the present level of online transactions. Embracing e-commerce and online payment methods has played a crucial role in keeping such enterprises afloat.

Going by the report ‘The Era of Rising Fintech’ on cashless transactions, tier-2 and 3 cities and towns continued to contribute over 50 per cent of all online transactions. Jammu & Kashmir tops the list of 10 digitally inclusive states and union territories for the first time, with a growth of 36 per cent in online transactions in JFM21 compared to JFM20, ranking above Uttar Pradesh, Madhya Pradesh and Haryana.

As people have shifted to e-commerce and taken steps to avoid handling currency in ordinary purchases.A lot of first-time digital users and previously traditional, brick and mortar businesses have come forward to embrace digital payments.

Apart from existing payment methods like UPI, Debit and Credit cards, options such as Buy Now Pay Later (BNPL) saw a whopping growth of 569 per cent in the last twelve months, owing to consumers avoiding bulk payments and preferring affordable payment modes.

According to the Vedanarayan Vedantham, Head of SME business, Razorpay, “India’s digital payments ecosystem in this timeframe has seen the kind of growth that might have happened over a 3-5 year horizon if not for the pandemic.”

Though there are still some factors  that lead to transaction failures in far flung areas like include poor connectivity, the poor performance of a payment partner’s system, or a mismatch in biometrics/identities due to the poor quality of biometrics captured at enrollment or the matching algorithm which need to look upon for seamless digital transactions.

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