NEW DELHI: Travel and entertainment were the flavour of this year’s festival season. A report by online payment solutions provider PayU revealed increased appetite for travel, with the number of users spending on travel and hospitality rising 105% year-on-year.
Overall spend and total number of transactions grew 61% and 67% respectively, compared to last year, as per the report.
The report compared digital payment transactions done in Oct-Nov 2020 with corresponding time period in 2021, and findings were based on transactions done on PayU platform.
A steady decline in fresh covid-19 cases with vaccinations ramping up led to more people stepping out for movies and other entertainment events compared to last year. Digital payments for movies and events clocked impressive recovery with 264% growth in total number of transactions and 450% growth in total spend processed, as per the report.
“The uptick comes on the backdrop of gradual re-opening of public theatres and auditoriums post second wave of COVID-19 pandemic,” the report stated.
“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. Also, 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 Hemang Dattani, Head- Data Intelligence, PayU.
UPI dominated mode of payment as debit cards saw a decline in usage.
Spends and number of transactions done through debit cards declined 13% and 18% respectively, whereas payment through credit cards saw a 66% increase in spends and 30% increase in the number of transactions, as per the report.
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