This year’s holiday season has illuminated digital payment companies, such as Paytm, PhonePe and Amazon Pay, with extraordinary transactions as more buyers felt comfortable paying their Navaratri and Durga Puja purchases electronically.
With the arrival of Diwali next week and these companies offering multiple innovations, refunds and payment options to buyers, industry executives anticipate further momentum in digital transactions in the coming days.
Amazon Pay experienced an overall transaction increase of 3.5x times during the sales event of the Amazon Indian Grand Festival from October 10 to 15, compared to a normal business day. Transactions through the Unified Payment Interface, or UPI, the latest mode of payment offered by Amazon Pay, increased about 2.5x times, the company said.
“In terms of the total value of payments on our platform during those few days, three quarters of the transactions were made digitally, which is 10 percentage points more than last year,” said Vikas Bansal, head of emerging payments at Amazon Pay. “In addition, in our EMI payment option, we saw 70 percent of the adoption in smaller towns and cities.”
A spokesperson for Paytm, the nation’s largest digital payments company, projected around 500 million transactions for October based on transactions reported during holiday sales, an increase of approximately 2.5x times compared to the holiday sales period of the holiday last year.
PhonePe recorded 150 percent more transactions during Flipkart’s Big Billion Day sales event from October 10 to 14, for which the digital payments company offered exclusive offers. The company said: “The PhonePe platform processed transactions worth 100 million rupees in a single day, with more than 50 transactions per second at its peak.” UPI-based transactions comprised 55 percent of all payments on the PhonePe platform During the Big Billion Days sale of Flipkart, he added.
The payment service provider FSS, which manages card and UPI-based transactions for online consumers, said it reported around 14.47 million transactions during the holiday sales period, 21.5 percent more than on normal days. In terms of value, the company processed USD 473 million in transactions, 75 percent more than on normal days.
While October marked the start of purchases for this year’s holiday season, industry executives hope that November will offer another boost to digital transactions, as Diwali provides a huge boost to consumption across the country.
“We intend to continue pushing for consumers to switch to digital payments with affordable offers, from simple payments to instant discounts and refunds,” said Bansal of Amazon Pay. “We have a 10 percent discount on HDFC Bank cards and we will give you an additional 10 percent rebate for each user who pays digitally.” Amazon also joined ICICI Bank to launch a special credit card for the bank’s customers. — Tech2