BNPL up 637% in 2021, recurring payments up 225%, says survey

This indicates that BNPL is mainstreaming credit with easier and faster access.

Furthermore, the subscription economy is booming with recurring payments clocking a significant growth of 225.31% in 2021. Other payment methods also contributed significantly to the total transactions in 2021, such as UPI (63.02%) and cards (25.92%). Interestingly, there was a huge drop in bank transfers, with a 51.77% drop in transaction volume.

Here are the conclusions of the 10th edition of ‘(Covid) Rising Era of Fintech (ERF)Reports from Razorpay, a full-stack financial solutions company. The report is based on online transactions on the Razorpay platform from January 2020 to December 2021.

According to the company, digital transactions are becoming a popular option in everyday households, as transactions related to telecom and electricity bills saw a growth of 3,640% and 2,353%, respectively, from 2020 to 2021.

Furthermore, lifestyle and fashion were the biggest contributors to e-commerce transactions in 2020, however, it was overtaken by groceries in 2021, which saw a growth of 233%. More and more people became health conscious in 2021 as the transactions related to fitness saw an increase of 611%.

Sector-wise, Delhi overtook Karnataka in digital transaction volume to account for 18.69% of all online transactions and grew by 208.82% year-on-year in 2021.

For the first time, Goa and Jammu and Kashmir warmed up for digital transactions in 2021 with growth rates of 162.54% and 161.44% respectively. “This could possibly be a result of revived tourism in these states,” the report said.

In addition, Tier-2 cities and Tier-3 cities recorded an average average growth of around 50% in transaction volume from 2020 to 2021.

Harshil Mathur, CEO and Co-Founder, Razorpay said, “On one hand, consumers are spending more with the help of user-friendly financial products like BNPL, while on the other, they can also save by investing in mutual funds and indulging in it. Active trading. While the first wave saw digital penetration among the first layer of businesses such as D2C brands, the second wave pushed more traditional offline businesses to adopt digital modes of transactions.

The report also pointed out that the food and beverage and financial services sectors were the top contributors to total transactions, followed by sports, utilities and e-commerce.

With more people opting for freelancing, the services saw the highest growth of 769.86% in transaction volume compared to 2020. Whereas, housing and real estate was the second fastest growing sector in 2021. It saw an increase of 315.65% and a fourfold increase. Transactions done in 2020

Specifically, the increase in usage in the gaming industry is a result of the growing popularity of fantasy leagues and esports. With increasing demand for games among consumers, there was a demand for game developer tools, with the transaction volume for the sub-sector increasing by 365.83% in 2021. Interestingly, tier-3 cities saw the highest growth in online gaming, which saw a 45.56 increase in transaction volume. ,

According to the report, with remote or hybrid work becoming the norm, professionals are probably settling in their hometowns as the sector in Tier-II and Tier-III cities has seen an average growth of over 210 per cent as compared to 2020.