Online transactions grew 80% in 2020 driven by tier 2, 3 cities: Razorpay

Online transactions grew 80 per cent in 2020 over the previous years, driven by strong adoption of digital transactions in tier II and III cities, according to a report by fintech firm Razorpay.

The report pointed that UPI transactions outgrew cards, netbanking and wallets with 120 per cent growth in 2020 and became the most preferred mode of payment, especially for tier II and III cities.

Razorpay – which facilitates digital transactions – said it witnessed a decline of 30 per cent in digital payments initially during the lockdown, but after the first 70 days of the national lockdown, digital payments rebounded by 23 per cent.