Data released by the National Payments Corporation of India showed that the number of UPI transactions reported less than 7% growth month-on-month (m-o-m) to 190.08 million in April. Volumes in March grew 4% over February, while the growth in February was 13% over January. The aggregate value of transactions in April rose 12% over March to Rs 27,021.85 crore.
Payments volumes on the Unified Payments Interface (UPI) seem to have hit a plateau in the past few months after new payment providers made a beeline to join the platform. Data released by the National Payments Corporation of India on Tuesday showed that the number of UPI transactions reported less than 7% growth month-on-month (m-o-m) to 190.08 million in April. Volumes in March grew 4% over February, while the growth in February was 13% over January.
The aggregate value of transactions in April rose 12% over March to Rs 27,021.85 crore. This is in contrast to the 35-150% m-o-m growth UPI volumes had been witnessing in the latter half of 2017, when Google India introduced its Tez app for UPI, followed by homegrown fintech player Paytm joining the UPI ecosystem.
NPCI is yet to release data on the share of transactions made using its Bharat Interface for Money (Bhim) app in the total UPI data. In March, the volume of transactions made using Bhim had risen 21% m-o-m to 11.95 million, while their value had increased 20.6% to Rs 4,839.65 crore.
During March, Bhim had also clawed back some of the ground lost to other UPI apps in previous months. Its share in the overall UPI app rose a full 100 basis points (bps) between February and March to 6.7%.
December 2017 had seen Bhim’s share shrink to 6% from 8% in November, as payments player Paytm introduced the payment mode on its platform. During the three months to November, Bhim’s contribution to UPI volumes slipped to 8% from 45% as Google India entered the UPI fray with its Tez app, loaded with cashbacks and other freebies. April 2018 could turn out to be an important month for Bhim as it saw cashbacks being packed into the app for users.
It is also not clear which app accounts for the largest share of UPI transactions, as NPCI does not release this data. In March, Paytm said it accounted for 40% of all UPI transactions in February and claimed to have upstaged Google Tez as the platform seeing the highest number of UPI transactions.
On February 27, Google India had said Tez has recorded 250 million transactions since its launch in the middle of September 2017. Paytm enabled UPI payments on its app in November 2017.