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Digital Payments to go Down by 30% due to Covid-19

The digital payment sector is slipping down due to the corona virus outbreak. People used to spend good amounts of money on various entertainment and shopping activities including watching movies in theatres, eating in restaurants, bars, shopping from malls and markets and other online sites for booking tickets for air planes or trains. A large part of the digital payments sector was driven by these markets which have gone down because of the corona virus outbreak all around the globe. There is a slowdown in industries and the digital payment sector has gone down by around 30% in the transaction value for the last few weeks as reported by the industry executives.

The Covid-19 outbreak has impacted many industries like hospitals, retail sectors, air travel leading to worse consequences in the sector of digital payments across the world.

A top executive says that the hit by corona virus is larger in the metros currently and it is not nationwide as of now.

There is a decline in the number of transactions on the digital payment websites even though there is customer traffic on the digital channels as reported by the leading payment companies.

With the consideration of the current situations there is a decrease in the spending of the customers as there is a disturbance in their daily routines as stated by the chief business officer of Pine Labs, a Point-of-Sale (PoS) terminals player Mr. Kush Mehra. There is a limit of the customer’s footprint in the stores and malls as they are limiting themselves to head out of their houses as less as possible, it is yet too early to state the actual impact.

The major players of the digital payment market Razorpay and the payment gateway platform CCAvenue claim that the online transactions are driven by the travel segment account for about 25% and are reduced by almost 35% to 40%.