Digital payment transactions fall sharply between April and May after sustaining a rising trend till March, hit by the second wave of COVID-19 pandemic, according to the National Payments Corporation of India (NPCI) data.

Mandar Agashe, Founder, MD and Vice Chairman, Sarvatra Technologies, “The second wave has led to lockdowns of various degrees all across the country. This has led to a fall in commerce across almost every industry, especially in travel, restaurants and malls. The fall in economic activity has also reflected in digital payments, showcasing that that there has been a significant paradigm shift to digital payments, even as the demand for cash circulation increased. Last year, activity in June was sluggish, but now, as cases fall and people get vaccinated, the lockdown is getting relaxed in all parts of the country in varied formats. This will hopefully lead to a surge in consumption once again.

Consumption has been postponed, not cancelled by people, and it is likely that purchases like clothes, furniture, décor and elective surgeries will see a spurt. Additionally, work from home essentials like electronic devices and mobile phones too will witness an uptake.”