Festivities, online shopping push PhonePe's transacts jump 26% in Q4 2021

The digital payments trend continued in the fourth quarter of 2021 with PhonePe alone recording over 6.63 billion transactions accounting for $155 billion, the fintech platform said in a statement. Meanwhile, over 25 million small merchants were also digitised by the platform.

A 26% quarter on quarter (QoQ) jump was noticed in the transactions to 6.63 billion resulting the same percentage of growth in the total payments value to $155 billion, the statement read, adding that the money transfer with Unified Payments Interface (UPI) reach to 2.72 billion while merchant payments stood at 3.15 billion registering high growth.

Goa registered the highest growth of 71% in terms of QoQ transactions followed by Andaman and Assam with 41% and 37% surge respectively. Meanwhile, Maharashtra crossed 1.01 billion transactions registered a growth of 27 % while Karnataka came at second with 24% QoQ growth and drove 932 million transactions.

Karthik Raghupathy, Head of Strategy and Investor Relations at PhonePe, said, “We saw the merchant transactions register robust QoQ growth driven by the holiday season, festivities and multiple e-commerce shopping sales.”

The fundamental shift in consumer behaviour towards contactless payment is here to stay, he said, adding that we expect to continue seeing a surge in volumes across use cases for Q1 2022 as well.