UPI records 754.54 Mn transactions in June; BHIM continues to struggle

Unified Payments Interface (UPI) has recorded 754.54 million transactions worth Rs 1,46,566.35 crore in June. As compared to May, this is close to 3% increase in transaction volume and a 4% decrease in transaction value.

Till date, UPI has also recorded the second highest figure for transaction volume. In May, it crossed Rs 1.5 trillion worth transaction mark by clocking 733.54 million transactions.

While NPCI-owned entity has been able to maintain its mojo, government regulated BHIM has once again failed to fire. In May, BHIM has recorded 15.77 million transactions worth Rs 6,627.42 crore that slumped down to 15.49 million transactions amounting to Rs 6,202.49.

The reason behind BHIM’s flat show is the rapid growth of private players in this space such as Google Pay, Paytm and PhonePe.

In May, Google Pay had registered 240 million transactions amounting to Rs 55,000 crore and dethroned its arch-rivals to become the largest contributor of NPCI-owned unified payment railroad.

On the contrary, PhonePe and Paytm registered 230 million and 200 million transactions worth Rs 44,000 crore and Rs 38,200 crore respectively.

The aforementioned private entities have not revealed their transaction figure for June.

NPCI-regulated inter-bank electronic funds transfer system (IMPS) has also recorded a slight downfall from 183.33 million transactions worth Rs 1,80,456.44 crore in May to 171.33 million transactions worth Rs 1,73,019.27 crore in June.

Meanwhile, RBI has proposed for waiving off charges that are applied on bank transfers carried out by National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement System (RTGS). To push digital transactions, the new payment fee structure will be applicable from today (01/07/2019).

There is no such announcement for IMPS

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source: https://entrackr.com/2019/07/upi-transaction-june/

Digital transactions will increase four times to 8707 Cr by end of 2021: RBI

With a promise to offer people of India e-payment experience that will be exceptionally safe, secure and truly world-class, the Reserve Bank of India has come out with vision document for the next three years.

In the vision road map, the central bank outlined 12 expected outcomes, including reduction in volume of cheque-based payments, growth of UPI, a four-fold increase in digital payments, increase in e-payment GDP, reduction in paper-based transactions, improved pricing, better customer grievance redressal mechanisms and establishment of new payment system operators (PSO), out of 36 specific action points over the 36-month timeframe.

RBI, in the vision document, said to witness accelerated growth in individual retail electronic payment systems, both in terms of a number of transactions and increased availability.

The number of digital transactions is expected to increase more than four times from 2069 crore in December 2018 to 8707 crore in December 2021, said ‘Payment and Settlement Systems in India: Vision 2019 – 2021’ document released by RBI.

In the same period, RBI is expected to see an increase in the share of digital payments to 14.8% of gross domestic product (GDP) by December 2021 as against 8.4% in 2018.  It also indicated that debit cards will play an important role in driving digital payments.

Usage of debit cards at PoS transactions is expected to be at least 44% of total debit card transactions, the vision document added. In value terms, it is expected to be 22% by the end of 2021.

RBI further plans to reduce the demand of the cash through enhancing the availability of card acceptance device infrastructure. It is expected to have 5 mn active PoS.

It also talked about creating an ecosystem for healthy competition in payment space.

The payment systems landscape will continue to change with further innovation and entry of more players which is expected to ensure the optimal cost to the customers and freer access to multiple payment system options, said RBI.

In January this year, expressing concerns of concentration in the retail payments space, the RBI had invited public views on opening up the payment space to encourage innovation and competition.

The current Vision document outlines the road map for the three-year period spanning from 2019 to 2021.

wallet script - rpay

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source https://entrackr.com/2019/05/rbi-digital-payment-vision-document-2021/

Mobile wallet transaction volumes 12% rise in March

After five months of an interval, mobile wallet-based transactions have witnessed a slight rise in March this year.

About 384.89 million transactions worth Rs 15,999 crore were recorded in March, which is an increase of 19% in transactions volume from last September and 11.55% from the preceding month, as per RBI data.

Around 324.16 million transactions amounting to Rs 15,102 crore took place in September. In February, close to 345 million transactions worth Rs 14,279 crore took place.

The rise is attributed to the year-end occurrence when the volume of transactions rises. India has seen a spurt in digital transactions since November 2016, when the government announced demonetisation of all Rs 500 and Rs 1000 banknotes.

In 2018-19, as per RBI, there has been 30% Year-on-Year jump in value and 37% growth in the volume of transactions in compared to 2017-18.

In September last year, mobile wallets witnessed most of the decline after the SC ruling on Aadhaar. The apex court barred private entities to use Aadhaar for electronic know your customer (e-KYC) to sign up a new customer.

This led to about 6-time rise in customer verification cost for mobile wallets.  This raised big concern over their completion of customer verification.

In October, despite the SC ruling, mobile wallets recorded around 368.45 Mn transactions amounting to Rs 18,786 Cr.

Transactions through mobile wallets fell in November as mobile wallet companies had to stop using Aadhaar for electronic know your customer (e-KYC) to enrol new customers.

Meanwhile, RBI had asked mobile wallets to complete the process by end of February 2019.

However, during the same period, UPI, which was launched in August 2016, witnessed sustain increase in transactions.

It hit a record high of 799.54 million transactions, 93K more transactions than when it was launched, worth Rs 1.33 trillion in March.

wallet script - rpay

As E Wallet plays a mighty role in today’s business world, Roamsoftdeveloped a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source : https://entrackr.com/2019/05/mobile-wallet-transactions-rise-in-march/