Digital banking is catching on with the value of transactions on the Unified Payments Interface (UPI) platform on its way to the Rs 1,000-crore mark in January. In November, the platform had reported transactions worth just Rs 90 crore. Moreover, the gap between the value of transactions on UPI and that on prepaid instruments or wallets is narrowing. While the gap in December was Rs 1,413 crore, the difference so far in January is just Rs 309 crore with more than half the month gone.
Wallets have been attempting to win over customers with attractive deals and a large vendor base that users can transact with. A couple of them have moved on to the UPI platform in collaboration with commercial banks. However, that does not seem to have gone down well with lenders, who believe wallets are not always following the rules.
Late last week the National Payments Corporation of India (NPCI) noted PhonePe and Flipkart apps were in contravention of the UPI guidelines of interoperability and asked them to comply with the rules.
Between January 1 and 19, the UPI platform recorded a total of 2.75 million transactions worth Rs 990.18 crore, data from RBI show. This is up from 2 million transactions in In December valued at Rs 7,12.03 crore. The average ticket size, however, has risen only marginally to Rs 3,600 in January from Rs 3,560 in December. In all, 36 banks now allow payments via UPI. As for prepaid instruments, January has seen a total of 54.46 million transactions on wallets issued by eight non-bank issuers, adding up to Rs 1,298.73 crore in the first 19 days. Unless the pace picks up, at an average Rs 70 crore a day, this would add up to Rs 2,139 crore for the month, only marginally higher than the Rs 2,125.43 crore clocked in December