Consumers in India are embracing the era of convenience and seamless accessibility by significantly increasing their spending on online services and entertainment. Insights from Simpl, a leading checkout network, reveal a substantial growth in both the number of transacting users and the total payment volume (TPV) in the services sector in the first eight months of this year.
Between January and August, Simpl’s 1-tap checkout platform has witnessed a remarkable 108% growth in transacting users for various service categories. This surge in demand is attributed to factors such as increased purchasing power, the propensity to spend, and the growing preference for convenience among consumers.
Simpl’s 1-tap checkout platform has facilitated easy access to services offered by a range of merchants, including popular names like BookMyShow (for movies and events), My Jio (for mobile recharge), DriveU (for on-demand driver services), Park+ (for Fastag recharge), and NoBroker (for home services, packers & movers), among others.
During the same period, the services sector recorded a notable 59% increase in total payment volume (TPV). TPV is a key metric in assessing the total value of payments successfully processed through a checkout network. This surge underscores the growing appetite for online services among Simpl’s users.
Remarkably, millennials, with an average age of 27 years, were at the forefront of this demand, accounting for 42% of the surge in services consumption. While major metropolitan cities led this trend, there has also been a growing adoption of online services in smaller cities, particularly in tier-3 cities and beyond. Simpl’s 1-tap checkout has played a pivotal role in making internet-based services more accessible and convenient for consumers in these areas.
Ashwini Ravindranath, Vice-President of Partner Success at Simpl, commented on this trend, saying, “An increasing number of consumers today are resorting to online services for travel, entertainment, and other essential and leisure services and are accessing these seamlessly with Simpl’s 1-tap checkout. Over the last eight months since January, we have witnessed a 108 per cent growth in transacting users across a plethora of services-based merchants, in a testament to growing affinity of consumers to seek convenience online.”
He further added, “This, complemented with our 1-tap checkout, has played a pivotal role in enabling a seamless checkout experience with near-zero transactions for millions of customers across the country.”
The surge in spending on online services and entertainment reflects the evolving preferences and habits of Indian consumers, who are increasingly leveraging digital platforms to enhance their convenience and accessibility to a wide array of services.
