New Delhi [India], April 17 : Payments towards mutual fund investments, insurance, and trading have seen a massive jump in the just-concluded financial year 2023-24, found payments solution provider Razorpay in an analysis.
The homegrown fintech company analysed over a billion transactions processed on its platform during the past financial year, to know the spending habits of Indians.
As per them, mutual fund investments surged by a whopping 86 per cent, insurance payments have seen a significant 56 per cent growth and trading experienced a 62 per cent jump in value in 2023-24.
"With this, we witnessed the emergence of a new India. One that is mature, one that not only lives in the now but is also actively securing the future," said Razorpay in a release.
According to Razorpay, the data revealed that Indians have increased their spending on dieticians by 125 per cent, indicating a strong commitment to healthy eating habits.
Health coaching has seen 45 per cent jump in transactions. A growing trend towards preventive healthcare was witnessed with sales of health products surging by 39 per cent, it found.
Further, the data revealed that payments for air travel surged by 2.4 times while spending on travel accommodations soared by 29 per cent.
Indians also indulged in cinematic experiences, with multiplex transactions witnessing a staggering 42 per cent increase in volume.
"From blockbusters like 'Jawaan' to the whimsical 'Barbenheimer,' and from 'Animal' to the action-packed 'Salaar,' Indians embarked on a cinematic journey like never before!" Razorpay said.
Notably, on December 31, online food orders doubled and dine-ins soared to 60 per cent above the daily average.
Reflecting on the trends, Shashank Kumar, MD and Co-founder, Razorpay said, "Indian consumers are evolving rapidly, encouraging brands to revolutionize their customer engagement strategies across all touchpoints... One of our recent surveys found that 96 per cent of Indian shoppers want a seamless experience whether they're shopping online or in-person."
NPCI reported that UPI transactions in the initial nine months of 2023-24 surpassed the cumulative figures for 2022-23, underscoring the nation's burgeoning trust in digital payment methods.
The share of UPI in digital payments in India has reached close to 80 per cent in 2023, informed Reserve Bank of India (RBI) Governor Shaktikanta Das earlier this year, as he outlined the growth of the payments ecosystem in the country.
Also, India today accounts for nearly 46 per cent of the world's digital transactions (as per 2022 data).
Retail digital payments in India have grown from 162 crore transactions in the financial year 2012-13 to over 14,726 crore transactions in 2023-24 (till February 2024) -- approximately a 90-fold increase over 12 years.
UPI is India's mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
The UPI payment system has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace. A key emphasis of the Indian government has been on ensuring that the benefits of UPI are not limited to India only; other countries, too, benefit from it. So far, Sri Lanka, Mauritius, France, UAE, and Singapore have partnered with India on emerging fintech and payment solutions.