With rising swipes, RuPay on par with retail in eShopping
HIGH RISE: Share of RuPay among overall card payments rose to 24% in January compared to less than 14% in May 2018.
Payment companies that process these transactions suggest that RuPay customers, typically those who live beyond the metros with accounts in public sector banks, are shopping more online and paying with their cards instead of cash on delivery.
Razorpay, a Bengaluru-based payment gateway startup, said there was a more than fourfold jump in RuPay card transactions on its platform between October and March. In addition, the number of merchants accepting these cards increased 46%.
“With the rise in internet penetration and a changed mind-set towards embracing digital payments, the account holders in tier-II and III cities have also started transacting digitally, which eventually has led to increase in usage of Ru-Pay online,” said Harshil Mathur, CEO of Razorpay. “It definitely is an indicator of digitisation of the unbanked economy.”
The top five banks that are driving the growth on the Razorpay platform are Punjab National Bank, SBI, Union Bank of India, Central Bank of India and Indian Bank, he said. Another likely reason is that ecommerce companies are trying to go beyond the metros and larger cities, said a top executive of a payments company.
Innoviti, which works with banks to install payment terminals at merchant outlets, has seen a “significant” jump in tier-II and tier-III locations. The share of RuPay cards among overall card payments jumped to 24% in January from less than 14% in May 2018, said Rajeev Agrawal, CEO of Innoviti.