India embraces 24-hour retail, nighttime consumer spending soars by 60%

Data from Simpl's Checkout Scan shows a remarkable 60 per cent increase in total payment volumes for orders placed between 10 pm and 4 am over the past year

Seven states, including Maharashtra, Karnataka, Telangana, Haryana, and New Delhi, have allowed shops and establishments to operate 24 hours a day, a significant shift towards round-the-clock commerce. This move has led to a surge in consumer spending, particularly during late-night hours, as more people avail themselves of various services at unconventional times.

According to data from Simpl’s Checkout Scan, there has been a remarkable 60 per cent increase in total payment volumes for orders placed between 10 pm and 4 am over the past year. This uptick spans a diverse array of merchants, including those in quick-commerce, food and beverage, mobility, and other services. These orders were placed by millions of consumers across the country using Simpl’s Checkout solutions, including 1-Tap Checkout and Pay-in-3.

The growing popularity of late-night in-house parties among millennials and Gen Z, extended weekends, and a protracted cricket season are among the key factors driving this trend. These cultural shifts have made nocturnal consumerism a rising phenomenon.

The number of transactions during these late-night hours has grown by nearly 30 per cent, highlighting the effectiveness of 24-hour retail operations. This model is increasingly being considered by other states. Additionally, there has been a 10 per cent increase in the average order value, spotlighting the convenience that consumers find in accessing services online at night.

Among the various categories, food and beverage merchants have captured the lion’s share of late-night orders, followed by mobility services, on-demand drivers, and parking service providers. Prominent merchants benefiting from this trend include Zepto, Blinkit, Swiggy Instamart in Quick Commerce; Zomato and Swiggy in Food and Beverage; and Myntra and Nykaa in Fashion.

Commenting on this trend, Nitya Sharma, co-founder and CEO of Simpl, said, “The decision of several state governments to allow shops and establishments to remain open 24 hours is resulting in increased convenience for customers and more economic activity for merchants."

"The 60 per cent growth in consumer spending and nearly 30 per cent growth in orders processed through Simpl’s Checkout Platform over the last financial year stand as a testament to the underlying sentiment among consumers to avail services beyond conventional business hours," he added.

This trend not only highlights evolving consumer behaviour but also signals a robust economic opportunity for businesses willing to adapt to the demands of a 24-hour economy. As more states consider adopting similar policies, the landscape of Indian retail may soon see a transformative shift towards all-night operations, benefiting both consumers and merchants alike.