Bengaluru: Karnataka's garden city has topped the list of "most digitised cities" accounting for highest card payments in a study conducted by payments solution company, Razorpay.

According to the Era of Rising Fintech report, which was released by Razorpay Software Pvt Ltd, on Thursday (July 18), Bengaluru is followed by Hyderabad, Mumbai, Pune and Delhi.

The top five digitised states as per the report are Karnataka, Maharashtra, Tamil Nadu, Andhra Pradesh and New Delhi.

The payments which are made through credit and debit cards was at 50% in the pay to merchants category in April, May, June while it was 56% in January, February and March, the report said.

Usage of credit and debit cards increased by 22% in April, May, June period as against January, February and March period this year.

Some of the top three sectors contributing to the digital payments growth in April, May and June was food and beverage 29%, gaming industry 15%, financial services 14% among others.

Tamil Nadu ranked fourth in contribution in digital transactions in the country with Chennai's share was highest at 57%, followed by Coimbatore, Tiruppur, Salem and Erode.

"Tamil Nadu is among one of the most developed states in India. Other than Chennai contributing the highest number of digital transactions, we noticed that lending is one of the upcoming growth sectors," Razorpay, co-founder and CEO, Harshil Mathur said.

Razorpay predicted that Tier-II businesses and consumers would drive 40% of digital payments transactions by 2020.