Cashless payments: India embraces UPI, growth shoots up 85 pct

By: | Published: October 6, 2017 4:09 AM

The Unified Payments Interface (UPI) channel grew the fastest among all modes of retail digital payments in September, rising 85% month-on-month (MoM) in terms of the aggregate volume of transactions, to 30.78 million, and 28% in value terms to Rs 5,293.5 crore, representative data released by the Reserve Bank of India (RBI) showed.

upi, reserve bank of india, rbi, cashless payment in indiaThis brings the average ticket size of a UPI transaction to Rs 1,719, lower than the corresponding figure of Rs 2,486 for August.

The Unified Payments Interface (UPI) channel grew the fastest among all modes of retail digital payments in September, rising 85% month-on-month (MoM) in terms of the aggregate volume of transactions, to 30.78 million, and 28% in value terms to Rs 5,293.5 crore, representative data released by the Reserve Bank of India (RBI) showed.

This brings the average ticket size of a UPI transaction to Rs 1,719, lower than the corresponding figure of Rs 2,486 for August.

UPI volumes have risen steeply in the last few months as more e-commerce players, such as Uber, joined the platform. In July, then managing director and chief executive officer of National Payments Corporation of India (NPCI) AP Hota had 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.

Among other modes of retail payments, the value of transactions made through Immediate Payment System (IMPS) rose 10% month-on-month to Rs 71,760 crore, while the volume grew 9.5% to 82.8 million.

The Unstructured Supplementary Service Data (USSD) channel recorded a 5% rise in volumes to 0.2 million and 10% in value terms from the month-ago period to Rs 32.36 crore. This mode of payment is meant for users of feature phones.

Transactions made through debit and credit cards at point-of-sale (PoS) terminals recorded a m-o-m drop in usage, falling 5.7% in volume terms to 229 million. The aggregate value of card transactions slipped a little over 1% from the previous month to Rs 45,194 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.

Wallets and other prepaid payment instruments (PPIs) issued by eight non-banks clocked Rs 2,760 crore, up 1.4% from August, on 87.5 million transactions, down 2.5% from the previous month.

Based on this, the average ticket size of a wallet transaction works out to about Rs 315, up from Rs 303 in August.

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