Since demonetisation and the launch of the Unified Payments Interface (UPI), merchant demand for digital payments has seen a 70 per cent Year-on-Year (YoY) growth, converged payment solutions company Razorpay said on Wednesday.
According to the first edition of its “Era of RisingFintech” report, non-cash transactions are likely to overtake cashtransactions in the country by 2023.
Over 56 per cent transactions were card-based which emergedas the mort preferred Person-to-Merchant (P2M) payment method. “We sawthat the Small and Medium Enterprises (SMEs) in Tier 1 and 2 cities are drivinga solid growth of 75 per cent in non-cash transactions,” said HarshilMathur, Co-founder and CEO, Razorpay. While credit card-based New Balance (NB) method secured 23.8 per cent ofthe total transactions recorded, the UPI method was used by 17 per cent users.
The report predicted that by 2020, 40 per cent of digital payment transactions in the country will be driven by Tier 2 and 3 businesses and consumers, and 50 per cent of the Internet users would use digital payments.