The latest publication from Germany-based online research firm yStats.com, “Top Mobile Payment Service Providers in India 2020 and Their Reaction to the COVID-19 Crisis” provides insights into the policies adopted by the top mobile payment service providers in India during the pandemic. Among other findings, the publication reveals that the coronavirus pandemic has further accelerated the use of mobile payments in India.
Rapid growth in the mobile payments market observed in India, during the COVID-19 crisis
Since COVID-19 lockdown measures were implemented in India, payments via mobile and contactless methods have been on the rise. According to the yStats.com report, transactions made via mobile phones increased by a significant number after the outbreak of the Coronavirus compared to before. Additionally, a significant percentage of consumers plan to switch to digital payment methods in the upcoming months rather than using traditional payment methods. During the pandemic in April 2020, a double-digit percentage of consumers were making purchases via digital wallets.
Amidst the pandemic, top mobile payment service providers in India introduced innovative services to support their users in maintaining social distancing
The top four mobile payment services providers in India, in terms of their market share of payment apps are Google Pay, PhonePe, Amazon Pay and Paytm. These top players have been promoting contactless payment methods to assist their users during the COVID-19 health crisis. A report cited in the yStats.com publication stated that Paytm recently launched its service of contactless ticketing for buying local transport tickets. Furthermore, some of these payment apps are introducing insurance policies via their platforms. For example, PhonePe launched an insurance package to cover treatment of the Coronavirus.
Number of transactions made through mobile payment apps increased due to the COVID-19 pandemic
Since the use of cash has reduced in India due to concern that it may contribute to the spread of the Coronavirus, consumers have started making more payments via mobile apps. Transactions via Amazon Pay significantly increased during the COVID-19 lockdown from March 2020 to May 2020, according to a report cited by yStats.com. Additionally, other mobile payment apps such as Google Pay and PhonePe also saw a surge in transactions made through their platform during the COVID-19 pandemic.
