Consolidated data of offline and online payments showed that transaction volumes fell by 5.2% during the month compared to April. The volumes for all payment systems stood at 4.34 billion in May, down from 4.58 billion in April when restrictions were not as widespread. Experts said while the fall was expected, pent-up demand may revive flagging consumption, leading to some amount of revenge spending. “It looks like the contraction in payment systems would have happened because there was hardly any economic activity in May. Mobility and consumption indicators recorded a sequential drop following local lockdown restrictions in the April-May period, said Indranil Pan, chief economist, Yes Bank, in a report on 31 May.

Source: Mint June 02, 2021 20:03 UTC