New Delhi [India], November 22 (ANI/PRNewswire): PayU, India's leading online payment solutions provider unveiled PayU Insights Report - Festive edition today, a comparative analysis between digital transaction trends in Festive Season 2020 and 2021.* The Indian festive season is a measure of consumer buying sentiment, and this report maps changes in demand across categories.
Strong sales on retail and e-commerce channels and massive pent-up demand resulted in consumer appetite rebounding; PayU registered a record high of 8 million transactions on a single day. Consumers are getting much more comfortable shopping for large ticket items online.
In Festive Season 2021, average spends have increased by 52% while overall transactions handled by PayU increased by 17% compared to 2020. PayU is a pioneer in driving value addition for merchants and banks through data insights, offering targeted solutions which allow them to deepen customer engagement & create actionable business strategies.
Maharashtra, Karnataka, Tamil Nadu, Delhi and West Bengal drive digital payment adoption
The above-mentioned states showed highest spending through digital payments, with Maharashtra and Karnataka accounting for 24.5% and 14.8% of total spends processed. Mumbai accounted for 20% of total spends this season, Bangalore for 13%, Delhi for 7%, Kolkata and Hyderabad both for approximately 5%.
Among smaller cities, Jaipur, Coimbatore, Vijaywada, Pune showed increased volumes of digital payments. Bhubaneshwar and Surat also made their way into Top 15 cities this year (Basis available data; location data not available for all transactions).
Travel and tourism sectors revitalized
Travel and hospitality saw an increase of 105% more users transacting in Festive season 2021, compared to last year. This could be attributed to relaxation of travel norms and positive impact of mass vaccination.
India showed healthy appetite for travel as total spends and total number of transactions grew by 61% and 67%, respectively, compared to Festive Season 2020. This was clearly seen in increased demand for different types of transport.
For airlines, total spends increased by 109%. Trains was a preferred mode of travel with 250% increase in total number of transactions and 200% increase in total spends. This could be because larger number of consumers chose public transport for inter-state travel, after large-scale vaccination drives in different states. Travel by cabs and self-driving options increased during Festive season 2021, with 271% growth in number of transactions and 111% growth in spends.
It could be that consumers preferred car rentals and ride-hailing options for weekend getaways and short trips. Holiday packages received a boost with record 200% growth in spends processed per day.
Appetite for financial services grows
Across BFSI categories, consumers were making larger transactions, as the number of transactions showed mild increase but spends increased in double & triple digits. As leading companies issued IPOs in October, investments through trading and wealth management platforms gained momentum, with 431% growth in total spends processed per day.
In Banking and Insurance, the spends through digital modes increased by 109%. Interestingly, consumers also showed penchant for debt reduction as total spends for credit repayments increased by 50% while number of transactions increased by 23%.
Movies see massive recovery
In the entertainment sector, digital payments for movies and events had a surprise recovery with 264% growth in total number of transactions and 469% growth in total spends processed. The uptick comes on the backdrop of gradual re-opening of public theatres and auditoriums post second wave of COVID-19 pandemic.
UPI dominates payment modes, debit cards decline
Payment through credit cards saw a 66% increase in spends and 30% increase in number of transactions. However, payment through debit cards saw a decline as both spends and number of transactions decreased by 13% and 18%, respectively. UPI was the next most popular mode of payment and witnessed 104% increase in total spends and 72% increase in total number of transactions.
Commenting on the PayU Insights Report - Festive Edition, Hemang Dattani, Head- Data Intelligence, PayU, said, "Festive Season 2021 was unique in several ways. After conservative sentiments post the second wave, businesses and consumers alike showed a more robust and optimistic consumption environment. Online shopping festivals organized by leading e-retailers, positive recovery in markets, and relaxed guidelines on travel and public events spurred digital payments across key sectors. Also, what we are seeing across categories is greater confidence in spending large amounts, which is a great sign for the economy and takes us closer to becoming Digital India."
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