Most modes of retail digital payments grew in volumes between June and July, with the National Electronic Fund Transfer (NEFT) and the Unstructured Supplementary Service Data (USSD) being the only laggards, according to data released by the Reserve Bank of India (RBI).
Most modes of retail digital payments grew in volumes between June and July, with the National Electronic Fund Transfer (NEFT) and the Unstructured Supplementary Service Data (USSD) being the only laggards, according to data released by the Reserve Bank of India (RBI). The Unified Payments Interface (UPI) grew the fastest on a month-on-month basis in July in terms of volume of transactions. While the volume rose 12.7% over June to 11.44 million, the value of transactions on the channel grew 10.2% to Rs 3,381 crore in July. It was followed by prepaid payment instruments (PPIs), comprised mainly mobile wallets and prepaid cards. PPIs grew the most in terms of transaction values, rising nearly 16% month-on-month (m-o-m) to Rs 9,856 crore.
This is, however, the second time in recent months that the total value of PPI transactions slipped below Rs 10,000 crore. Transaction volumes added up to 270.24 million, up 5.7% from the June figure of 255.65 million. This puts the average ticket size of a wallet transaction at about Rs 365. The volume of Immediate Payment Service (IMPS) transactions rose nearly 5% month-on-month to 69.07 million and the aggregate transaction value rose 1.4% to Rs 60,476 crore.
The volume of credit and debit card transactions at point-of-sale (PoS) machines grew the slowest in volume terms, rising 0.3% over the June level to 365.22 million, while the value of transactions actually fell 6.2% to Rs 68,498 crore. USSD volumes slipped 5% m-o-m to 0.19 million and the total value of transactions fell 3.6% to Rs 30.21 crore. The use of USSD, an SMS-based money transfer service, had been on a decline in the first few months of 2017, as cash came back into the system and the usage of the Bharat Interface for Money (BHIM) app took off. BHIM is available for use on feature phones, and competes directly with the USSD service. The volume of NEFT transactions declined 2.8% month-on-month to 148.14 million in July, while the value of transactions slipped 5.4% to Rs 12.01 lakh crore between June and July.