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How COVID-19 has impacted fintech, digital payment industry in last 1 year

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At the Global PayEX platform, Krishnan says they witnessed National Automated Clearing House (NACH), NEFT, and RTGS gaining an adoption rate of 95 percent.

How COVID-19 has impacted fintech, digital payment industry in last 1 year
The COVD-19 pandemic fuelled large-scale adoption of digital payments and digital commerce in India – right from metros to even tier 4/5 cities. Digitising payments both for receipts and payouts became a necessity.
According to Mohan Krishnan, founder of Global PayEX, COVID-19 led to a massive shift from manual processes towards automation and cloud-based accounting to upgrade their accounts receivable and payable functions, including collections and reconciliations.
At the Global PayEX platform, Krishnan says they witnessed National Automated Clearing House (NACH), NEFT, and RTGS gaining an adoption rate of 95 percent.
Adding to this, Manish Patel, founder and CEO of Mswipe says it witnessed growth in contactless payments from 13 percent of total transactions in January 2020 to 30 percent of total transactions in January 2021.
“Businesses which were earlier offline, have now started accepting online payments. According to an RBI report, as India was fighting its way against COVID-19, it logged a record 1.34 billion transactions in June 2020. Digital payments also touched a record high in 2020. POS terminal deployed by banks have gone up to 5.1 million in September 2020 from 3.6 million in January 2019," Patel said.
Adoption and awareness about digital payments have also skyrocketed along with the benefits associated with it. People have been using their smartphones for making payments.
Patel believes that these habits will continue because people have realised that digital payment methods are simple and a lot of them can be done remotely and contactless.
Additionally, he says that push towards payment acceptance solutions that are simple and affordable will continue in order to increase coverage of digital payments infrastructure across the country.
"The government along with industry players have been working towards this through the 'Payment Infrastructure Development Fund' which especially focusses on increasing digitization in the rural and north east region," he opines.
Talking about business, Lalit Mehta, co-founder and CEO of Decimal Technologies says it witnessed a positive impact on their business.
"We focussed our energies on crafting solutions such as video KYC, remote assisted digital journeys, using lead and activity management systems, etc. In the last one year, the industry has seen faster adoption of digitally enabled products. Adoption of video KYC increased to avoid physical contact," Mehta said.
Overall, with some hiccups here and there, and learnings, Mehta says they have come out stronger from the global crisis.
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