The confidence injected by the COVID-19 jab in the Indian consumer has led to greater spending on travel and movies this festive season, according to a report released by online payments company - PayU.
“Festive Season 2021 was unique in several ways. After conservative sentiments post the second wave, businesses and consumers alike showed a more robust and optimistic consumption environment. Online shopping festivals organised by leading e-retailers, positive recovery in markets, and relaxed guidelines on travel and public events spurred digital payments across key sectors,” said Hemang Dattani, Head- Data Intelligence, PayU.
During the festive period this year, PayU registered a record high of 8 million transactions on a single day. The overall transactions handled by the digital payments services provider increased by 17 percent while average spends went up by 52 percent compared to 2020.
On the e-commerce front, owing to week-long and month-long sales with deep discounts, the total number of transactions increased by 40 percent while the total spends went up by 50 percent.
Following the relaxation in travel norms and mass vaccination, the travel and hospitality sector saw an increase of 105 percent in transacting users this festive season compared to last year. Holiday packages received a boost with a record 200 percent growth in spends processed per day, according to the PayU Insights Report.
On the entertainment side, the gradual re-opening of public theatres and auditoriums post the second wave of COVID-19 pandemic led to a recovery in digital payments for movies and events with 264 percent growth in the total number of transactions and 450 percent growth in total spends processed.
“What we are seeing across categories is greater confidence in spending large amounts, which is a great sign for the economy and takes us closer to becoming Digital India,” said Dattani.
Geographically, Maharashtra and Karnataka were the leading states, accounting for 24.5 percent and 14.8 percent of total spends processed.
Amongst cities, Mumbai leads with 20 percent of total spends this season. Close behind was Bangalore (13 percent) followed by Delhi, Kolkata and Hyderabad.
Among smaller cities, Jaipur, Coimbatore, Vijaywada, Pune showed increased volumes of digital payments. Bhubaneshwar and Surat made their way into the top 15 cities this year.
(Edited by : Kanishka Sarkar)