E-payments jump in small towns, cities

Digital payments are moving beyond the metros, and electronic payment firms are positioning themselves for the change. With the pandemic prompting more people to try out contactless transactions, firms are rolling out products and features to tap the new frontiers.

While BharatPe said transaction values have risen 30-35% in tier-II geographies and beyond, Paytm Payments Bank (PPB) said its share of transactions from tier-II, -III and -IV locations,which was around 50% in 2018, has increased from 60% to 67% in the past six months. PhonePe said 70% of its transactions now comes from tier-II, III cities and beyond, while Freecharge said its share of transactions from smaller towns are up from 3% pre-covid to 5% now.

“In the past five months, with people staying indoors, the demand for online payments grew by 40% in tier-II and -III cities.