Most modes of retail electronic payments grew month-on-month in August in volume terms, with the exception of the Unstructured Supplementary Service Data (USSD) channel, which remained flat, according to representative data released by the Reserve Bank of India (RBI). USSD transactions remained unchanged in volume terms at 0.19 million and slipped 2.6% in value terms from the month-ago period to Rs 29.42 crore. This mode of payment is meant for users of feature phones.
The Unified Payments Interface (UPI) channel grew the fastest – rising 45% month-on-month (m-o-m) in terms of the aggregate volume of transactions to 16.6 million in August and 22% in value terms to Rs 4,127.2 crore.
This brings the average ticket size of a UPI transaction to Rs 2,486, lower than the corresponding figure of Rs 2,966 for July.
The increased usage of UPI may have come due to more e-commerce players, such as Uber, joining the platform in August. In July, then managing director and chief executive officer of National Payments Corporation of India (NPCI) AP Hota told FE that UPI received a significant boost after it was made available on Flipkart and NPCI was working to on-board Amazon in a bid to further push UPI usage.
In August, NPCI had said 22% of UPI transactions by volume come from merchant payment transactions.
Wallets and other prepaid payment instruments (PPIs) issued by eight non-banks clocked Rs 2,722.2 crore, up 8.4% from July, on 89.7 million transactions, up 1.1% from the previous month. Based on this, the average ticket size of a wallet transaction works out to about Rs 303, up from Rs 283 in July.
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.
Transactions made through debit and credit cards at point-of-sale (PoS) terminals grew 2.2% in volume terms from July to 243 million. The aggregate value of card transactions, rose over 4% from the previous month to Rs 45,708.11 crore. This data is based on card transactions sourced from four banks and the final figure for the entire system is likely to be much higher.
The value of transactions made through Immediate Payment System (IMPS) rose 7.7% month-on-month to `65,149.47 crore, while the volume grew 9.5% to 75.7 million.