Infected cases are increased day by day around the whole world in the pandemic outbreak of COVID-19. Where corona-virus has been the impact on every sector in the economy while another side it has also affecting digital payment.
As per the report of Razorpay (a financial technology platform) uses of digital payments are dropped 30% in the past few days during the lockdown.
It affected the sectors such as logistics declined by 96%, travel dropped by 87%, food & beverage dropped by 68% and real estate declined by 83%. Digital transactions on these sectors have drop-down in the past few days due to lockdown by pandemic COVID-19.
Due to lockdown merchants have not able to open their business and peoples stay at home so they have not been able to go for dining out which affects restaurants have closed and movies have been postponed due to shuts of cinema halls.
As per Harshil Mathur CEO and Co-Founder of Razorpay, “A significant drop of 30 percent in online payments in the last 30 days is something we are seeing for the first time after demonetization”.
In also addition, Harshil Mathur added that before Lockdown in the first two weeks online spending up by around 10% but later saw a great decline in the digital mode of payment because of people staying indoors.
According to BharatPe (a QR based payment Company) transactions on the digital platform have reduced by around 10% to 15%.
Gujarat, Mumbai, Ahmadabad, Madhya Pradesh, Tamil Nadu, and Chennai are some cities which have mostly affected in a digital transaction in the outbreak of Corona-virus. The generally, digital mode of payment has wide affected in metro cities rather than other cities.
But another side where the digital mode of payment is declined due to cancelled of travel, shut shops, and shuts cinema halls, etc.
Few sectors have been good for digital transactions during the lockdown period such as online donation towards NGOs increased by 180%, utility bill payments, IT and software, media, and entertainment.
In the past few days, transactions with mobile wallets are increased in the 2-Tier cities, owing to increased contribution PM cares funds and avail cashback.
During the lockdown, the highest contribution of 44% by UPI payment mode, other contributions by credit and debit cards with 38% and with net banking 10%.
In the real circumstance, as per compared the last few days before lockdown, the transactions with the digital mode of payment (i.e. UPI App, Net Banking, Debit, and Credit cards) has been declined.