Consumption picks up in June with pay-later, EMIs as preferred payment modes - The Financial Express

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Consumption spends picked up in some segments during the month of June as lockdown restrictions were eased in many parts of the country, payment industry players said. Credit card payment app Cred said in its June 2020 newsletter that apart from Mumbai, other geographies saw a rise in spending by affluent individuals. Razorpay also saw an improvement in spending in some segments, led by logistics, healthcare, and real estate.

However, this does not mean that households are free from financial stress, which has now started to show up in the form of a change in preferred modes of payment. In the sixth edition of its report titled ‘Era of Rising Fintech’, Razorpay said, “Paylater, Cardless-EMI & EMI have become preferred payment modes with a growth of 290%, 178% and 125% respectively, due to stress in income across households.”

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Moreover, even as the demand scenario improves, the overall revenue in the digital payments market is likely to drop this year as the value of transactions has been falling, Razorpay said. This is due to losses in the e-commerce, travel, hospitality and lending sectors.