Digital payments have dipped across some of the sectors including travel, hospitality, e-commerce of non-essential goods. Akash Sinha, CEO and Co-founder, Cashfree, an online payment platform for businesses says, "We see that specific sectors have witnessed a decline in digital transaction volume and value. For instance, during March 2020, travel and hospitality dipped by 90% as flights came to a halt and hotel bookings were cancelled. With the lockdown coming into effect, e-commerce deliveries and mobility services were affected, and we saw a decline of 80%. Internet-based lenders have lost momentum as well -- both collections and disbursal of loans are down by 40%."
However, few sectors like entertainment, groceries and gaming saw an uptick during this time. Sinha says, "Utilities like bill payments, rent payments, even insurance have remained unaffected and essentials like groceries, food delivery have seen a sudden spike of around 25% as people have resorted to online purchases. This is evident in the fact that consumer demand rose so much that popular online grocery store apps and websites crashed. Since people are confined to their homes, there has been an uptick in online gaming, with a spike of 50% though live sport-related fantasy gaming has taken a hit in the absence of live-action.
Cashfree through its solutions is trying to solve the prevailing problem of its merchants and clients. Sinha says that companies are moving towards digitisation mainly for collection and disbursal. "We have created a bouquet of solution making life easy for people. The insurance sector shall grow tremendously in the coming 2-3 years," adds Sinha. Cashfree is also helping delivering companies who are delivering essentials at the doorstep to collect payment digitally.