Karanataka Is Most Digitized State; Bengaluru Tops Among Cities In India

Razorpay, a payment solutions company in Bengaluru recently launched its second digital transactions report titled “The Era of Rising Fintech.” In this report, the company has revealed the analysis of online spending pattern of various businesses and consumers across multiple payment modes that are available on the Razorpay platform.  

Bengaluru Is Topmost Digitized City

The report places Karnataka at the top of the list for most digitized states in the quarter between April – June 2019. Karnataka is followed by Maharashtra and Delhi with Tamil Nadu and Andhra Pradesh taking fourth and fifth spot respectively.


The co-founder and CEO of Razorpay, Harshil Mathur said, “Digital adoption in Tamil Nadu has grown by more than 35 percent in the last three months and UPI as an instrument has grown by 57 percent in the State during the last quarter.” In the most digitized cities list, Bengaluru grabbed the first spot followed by Hyderabad, Mumbai, Pune, Delhi, and Chennai.

Volume Of Digital Transaction In Major Cities And States

More than 57% digital transaction volume in Tamil Nadu was recorded from Chennai followed by Coimbatore, Tiruppur, Salem, and Erode. Major contributors to the P2M (person-to-merchant)  segment were credit and debit cards with a share of 55%. The share of net banking is 24% whereas that of UPI is 20%.

The highest growth in terms of digital payments was witnessed in the food and beverages sector in Chennai during the last quarter between April -June with 31% contribution followed by 13% contribution by gaming and12% contribution by financial services.  In the earlier quarter between January-March, the food and beverages share was 36% followed by 15% share of financial services and a 10% share of tour and travels.


P2M Segment At National Level

In the April -June quarter the P2M segment registered a share of 50% led by credit and debit cards at the national level. It was 6% less of 56% recorded in the previous quarter of January-March. The usage of cards registered a growth of 22% during the first two quarters of 2019. UPI stood at the second position in the most preferred mode of payment with a 34% share in the P2M segment whereas net banking recorded a share of 13%. 

The contribution of UPI witnessed a growth of 71% on a quarterly basis whereas Google Pay was the most preferred app operated on the UPI platform registering a share of 57%.  PhonePe came second with a contribution of 26%.