The volume and value of transactions made through the Unified Payments Interface (UPI) channel during May were the highest in any month since its launch in mid-2016. The aggregate value of UPI transactions during the month under review stood at Rs 2,770 crore, nearly 26% higher than that for April, according to representative data released by the Reserve Bank of India (RBI). While the value of UPI transactions came in higher than that of all wallet and other prepaid payment instrument (PPI) transactions, PPIs continued to clock exponentially higher volumes. PPIs issued by eight non-banks clocked Rs 2,530 crore, up 13.4% from April, on 91.3 million transactions, as against 9.2 million transactions recorded on the UPI channel. This brings the average ticket-size of a UPI transaction to about Rs 3,010, higher than Rs 2,998 in April, while that of a wallet transaction works out to about Rs 277, nearly unchanged over the figure for April.
The average value of a UPI transaction is typically higher than that of a wallet transaction because use of the former channel has so far been limited to peer-to-peer payments, while wallets are more commonly used to make small-value payments to merchants. The wide gap between the two figures suggests that the National Payments Corporation of India’s (NPCI) efforts to push UPI acceptance by merchants are yet to bear fruit.
All other modes of retail digital payments witnessed a month-on-month rise in value during May. The value of transactions at PoS machines grew 2.3% month-on-month to Rs 44,120 crore. Data for PoS transactions are sourced from four banks. The value of transactions made through the Immediate Payment System (IMPS) rose 4.2% to Rs 58,560 crore.
You may also like to watch:
Even the Unstructured Supplementary Service Data (USSD) channel, which had been seeing a fall in usage every month since February, saw the aggregate transaction value rise 5% month-on-month to Rs 31.67 crore.