Karnataka recorded the second-highest number of digital transactions on fintech platform PhonePe in the July-September quarter of calendar year 2021. Maharashtra took the top spot.
Bengaluru Urban was the top district accounting for around 63% of the total digital transactions in Karnataka, with the value of the transactions in the metropolitan area being ₹48 crore. This was followed by Mysuru with transactions valued at ₹2.5 crore and Bengaluru Rural with ₹1.82 crore, according to the company.
In the third quarter, merchant payments volumes beat money transfer volumes by around 5% on average across India. In Karnataka though, merchant payment volumes came in at 36% more than money transfer volumes.
Dharwad district saw the highest rebound in transaction volumes QoQ as the second lockdown was eased towards the end of June 2021 and early July. The district saw a 50% increase in the number of QoQ transactions while Bengaluru Urban came in second with a 46% increase in transactions.
Also, PhonePe found mutual fund transactions in Karnataka increase by 33% in Q3 2021 relative to Q2 2021.
Karthik Raghupathy, Head of Strategy and Investor Relations at PhonePe, said, “It is fascinating to see the increasing penetration of digital payments in Karnataka. We are seeing phenomenal growth across all key metrics such as transactions, users and categories across the State, and the post-pandemic recovery has given a further fillip. It is going to be an exciting next quarter with the festivities and the holiday season, and we are already looking forward to the next set of interesting insights and trends emerging from Karnataka for Q4 2021.”
