BHIM app gives up pole position; UPI only major digital payment channel to grow in November, RBI data shows

By: |
New Delhi | December 08, 2017 6:04 AM

The aggregate value of card transactions fell nearly 10% from the previous month to Rs 47,981 crore.

BHIM app, Unified Payments Interface digital paymentThe Unified Payments Interface (UPI) channel was the only mode of retail digital payments to register significant growth in transaction volumes in November, with the number of transactions rising 36.5% month-on-month (m-o-m) to 104 million and their value increasing by 37% to Rs 9,640 crore, representative data released by the Reserve Bank of India (RBI) showed.

The Unified Payments Interface (UPI) channel was the only mode of retail digital payments to register significant growth in transaction volumes in November, with the number of transactions rising 36.5% month-on-month (m-o-m) to 104 million and their value increasing by 37% to Rs 9,640 crore, representative data released by the Reserve Bank of India (RBI) showed. UPI volumes have risen steeply in the last two months with the entry of Google Tez, Google’s payment app, which used cashbacks and other incentives to on-board users, even as Bharat Interface for Money (BHIM) app relinquished its pole position. The entry of Google Tez and increased competition from other applications like Phone Pe seem to have weighed on BHIM’s performance. The value of transactions made through Immediate Payment System (IMPS), in November, grew 4% m-o-m to Rs 78,258 crore, while the volume grew 1.5% to 89.5 million. This clearly points to an expansion of average transaction value, even though the volume growth has been sharply lower month-on-month, when compared to the above 6% growth in October and the near 9% growth in the preceding two months.

BHIM app, Unified Payments Interface digital payment

Among other modes of retail payments, debit and credit card transactions at point-of-sale (PoS) terminals fell 5.4% m-o-m in volume terms to 242 million. The aggregate value of card transactions fell nearly 10% from the previous month to Rs 47,981 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 3,140.5 crore, down 4% from October, on 91 million transactions, down 5% from the previous month.Based on this, the average ticket size of a wallet transaction works out to about Rs 345 in November, up from Rs 340 in October.

The decline in volumes and value of transactions through credit & debit cards and wallets may be attributed to the post-festive season slowdown in spending by consumers. A firmer trend, though, will be visible only after data for the next few months becomes available. The November month data, therefore, by itself may not be an indicator of the future trend in digital payments.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Paytm, PolicyBazaar among 35 IPOs in Dec quarter; here’s how primary market will perform in coming weeks
2Vodafone Idea, PNB among volume toppers on NSE; IRCTC, Tech Mahindra record highest traded value
3SBI, Tech Mahindra among 142 stocks to hit 52-week highs on BSE; 24 shares at 52-week lows