The value of transactions made through mobile wallets and other prepaid payment instruments (PPIs) overtook those made via the Unified Payments Interface (UPI) channel during April. In fact, April witnessed a decline in the value of almost every mode of retail digital payments. PPI transactions grew 4% in value terms during April over the previous month to Rs 2,233.01 crore, representative data released by Reserve Bank of India showed. UPI payments, on the other hand, dropped 8% from their March value to Rs 2,198.92 crore. Data on PPI payments is sourced from eight non-bank issuers.
UPI payments had edged past wallet payments in February and continued to outperform the latter in March. This is also the first time UPI has recorded a month-on-month fall in value terms since the regulator started releasing data on it in November. The volume of UPI transactions, however, grew 11.3% over March to 6.92 million, taking the average ticket size to Rs 3,187, down from Rs 3,855 in the previous month.
With an aggregate volume of 8.92 million, wallet transactions had an average ticket size of around Rs 251. A lower ticket size typically implies that a channel is being used for making payments of smaller value at small merchant outlets or for public transport. A higher ticket size indicates a greater incidence of peer-to-peer payments.
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The steepest fall among all digital channels was seen in mobile banking, which saw transaction values dropping 32.6% over March to Rs 1.01 lakh crore. Data for mobile banking transactions is sourced from five banks. The value of transactions at point-of-sale (PoS) machines fell a little over a percentage point to Rs 41,166.36 crore. The value of card transactions had peaked in December at Rs 52,223.84 crore before slipping to Rs 48,124.11 crore in January and Rs 39,147.02 crore in February. Data for such transactions are sourced from four banks.
The value of transactions made through the Immediate Payment System (IMPS) slipped 0.5% to Rs 56,205.86 crore. The Unstructured Supplementary Service Data (USSD) channel, meant for users of feature phones, fell 10.8% from March to Rs 30.16 crore. This marks the third straight month of fall in the value of USSD transactions after it had peaked at Rs 38.18 crore in January.