Electronic Payment: Offline Stores Growing Faster in September Quarter

CHENNAI: Offline merchant payments (such as kirana store transactions) grew faster than online merchant payments (food delivery or e-commerce), growing 65% in the July-September period compared to the quarter previous, according to a report. The opening of physical stores after the second wave of Covid drove growth.
In the September quarter, UPI and merchant payments crossed the Rs 200 crore mark, registering transactions of Rs 221 crore and Rs 231 crore respectively, the head of strategy and investor relations said. by PhonePe, Karthik Raghupathy. Almost 4 out of 5 merchant payments were offline transactions during this period, he said.
“Rapid growth (QoQ) is an indicator that digital payments are entering all markets. The next quarter is going to be exciting with the festivities and the holiday season, ”said Raghupathy.
Banking technology provider Sarvatra Technologies, which has partnered with more than 50 urban cooperative banks live on its UPI platform, said it has seen a significant change in store owner’s confidence in accepting digital payments offline, compared to the July-September quarter of the previous year.
Its chief executive, Mandar Agashe, said offline digital transactions allow kirana store owners to accept payments via QR code with instant notification of payment completion. “Even the smallest payments are now accepted by these stores because it allows them to serve more customers, which saves them time,” he said.
Anand Kumar Bajaj, managing director and CEO of another payment service provider PayNearby, which saw a significant increase in offline digital payments of 11.5% month-over-month in September, said he also saw stable growth in online payments.
“In addition to the increasing use of QR code and card swipes, we are seeing a greater uptake of the ‘tap-and-pay’ option, which is widely seen as an urban phenomenon,” he added.

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