Medilytix Bureau:
If you thought the United Payments Interface (UPI) was the only shining spot of India’s burgeoning fintech industry, think again. Buy Now Pay Later (BNPL) is increasingly turning into a favourite credit instrument for millions of Indians with payments in this sector growing by a whopping 637 per cent in 2021, a report by the fintech major Razorpay stated.
The report, titled ‘The (Covid) Era of Rising Fintech,’ points out that recurring payments have grown by 225 per cent during the previous year. BNPL transactions registered a 569 per cent growth in 2020, and this massive jump from 2020 to 2021 indicates that this sector is very well on its way to make short-term credit mainstream with easier and faster access, the report argued.
Other payment methods also contributed significantly to total transactions in 2021, such as UPI (63.02 per cent) and Card (25.92 per cent).
The report is based on online transactions held on the Razorpay platform from January to December 2020 and 2021,and it provides a detailed view of the evolving fintech ecosystem, the digital spending patterns of consumers and an analysis of how different sectors and payment modes performed during 2020 to 2021.
When it came to digital transactions, payments related to telecom and electricity bills soared by 3640 per cent and 2353 per cent, respectively, from 2020 to 2021.