Karnataka emerges as the second highest state in digital transactions in Q3
The Quarter 3 data from PhonePe Pulse unveiled some interesting data insights and trends from across India. In what is a true validation of the reach and penetration of digital payments in Karnataka, the state has emerged as the second highest in terms of the number of overall digital transactions, with Maharashtra taking the top spot.
Karnataka has witnessed phenomenal growth both in the number of use cases for which payments are being made digitally, as well as the number of users going cashless. From offline payments at stores and kiranas, to money transfers, users from across the state have shown a strong preference towards leveraging digital payments for all their needs.
With digital payments penetration growing rapidly across the state, it is now time to look at some key takeaways from how users in Karnataka are spending digitally!
Bengaluru Urban made it to the top with its number of transactions
Accounting for over 63% of the total digital transactions occurring in the state, Bengaluru Urban has come out at the top with a whopping 48 crore transactions! This is a strong indicator of how user payment preferences have changed over the last few years and how metros are adapting to this shift.
Mysuru followed Karnataka with about 2.5 crore total transactions, with Bengaluru Rural following right behind with 1.82 crore transactions. Such changes in payment habits are more permanent in nature with an increasing number of people relying on digital payments now.
Read detailed insight about Digital Payment Trends in India
Merchant payments is Karnataka’s favourite use case
In the third quarter of 2019, merchant payments overtook money transfer volumes, which is more than a year ahead of the time that it took for this trend to catch-on Pan-India. Furthermore, during Q3 2021, merchant payments volumes beat money transfer volumes by 5% on an average, across India.
Furthermore, in Karnataka, merchant payments volumes for the third quarter were 36% more than money transfers!
Transactions increased post COVID induced lockdowns
What marks the beginning of a post COVID era is the rapid increase in both offline and online transactions. During Q3 2021, offline transactions were at 11.58 Crore and online transactions were at 2.26 Crore. The staggering 5X increase in the number of transactions since Q2 2020 is a clear indicator of increasing consumer trust in the digital payments ecosystem!
The Dharwad district in Karnataka saw the highest rebound in transactions volume on a Quarter on Quarter basis as the second lockdown was lifted. It also saw an astonishing 50% increase in its total transactions, with Bengaluru Urban following suit with a total 46% increase in transactions on a quarterly basis.
With digital payments becoming a necessity in today’s times, it is no surprise that users have started placing a lot of stock in contactless payments and the convenience it brings.
Read detailed insight about Online Transaction Trend During Covid-19 era
Mutual Funds transactions in Karnataka have gone up significantly
In Q3 2021, mutual funds transactions in Karnataka went up by 33% as compared to the previous quarter. This indicates that digital payments platforms such as PhonePe are demystifying the complex world of investments and making the products and process of purchasing them more accessible for everyone.
Additionally, the number of registered app users in Karnataka has also seen a massive increase to 2.58 crore while the mobile app opens increased by 30%.
In a post-lockdown environment, the relevance of digital payments has only increased with quick, hassle free, contactless payments becoming the preferred choice for most people. Amidst this, PhonePe has emerged as the market leader for effortless, easy digital transactions replacing traditional modes of payment.
