Karnataka saw the highest adoption of digital payments (26.64 per cent), followed by Maharashtra (15.92 per cent) and Delhi NCR (13.01 per cent), it added.
Interestingly, the usage of cards declined to 46 per cent in 2019 from 56 per cent in 2018, and and netbanking to 11 per cent from 23 per cent in 2018. UPI, on the other hand, grew to 38 per cent in 2019 from 17 per cent in the previous year.
Among UPI, Google Pay contributed 59 per cent, PhonePe contributed 26 per cent, followed by Paytm (7 per cent) and BHIM (6 per cent) in digital transactions in 2019. Amazon Pay was the most preferred wallet among consumers (33 per cent), followed by Ola Money (17 per cent) in 2019.
Owing to the growth of UPI, share of wallets continue to decline despite the increase in the number of transactions, the report said.
The top three sectors in digital payment adoption for 2019 were food and beverage (26 per cent), financial services (12.5 per cent) and Transportation (8 per cent), the report said.
"The year 2019 was buzzing for the fintech sector with adoption of new digital payment modes and bringing the digital currency to the mainstream. And the last six months saw a tremendous shift in the consumption patterns of businesses and consumer preferences of digital payments," Harshil Mathur, CEO and co-founder of Razorpay, said.