After struggling in the recent months due to the Reserve Bank of India’s (RBI) strict ‘know your customer’ (KYC) directive, mobile wallet companies posted a record value of transactions in June.
After struggling in the recent months due to the Reserve Bank of India’s (RBI) strict ‘know your customer’ (KYC) directive, mobile wallet companies posted a record value of transactions in June. The value of transactions through mobile wallets hit a record high of Rs 14,632 crore in June, according to data released by RBI. However, the total number of transactions fell by more than 4% month on month to 309.6 million after recording an all-time high of 325.4 million transactions in May.
The record numbers showcase a turnaround by mobile wallet companies as they were struggling in the recent months due to the central bank’s directive of strict KYC guidelines. The value of mobile wallet transactions fell from a peak of Rs 13,104 crore in February to Rs 10,097 crore in March, the RBI data showed. The volume of transactions through the mobile banking system jumped 14% month on month to record an all time high of 306.4 million transactions in the month of June. The value of debit and credit card transactions increased 1% month on month and marked an all time high of Rs 3.62 lakh crore in June, up from Rs 3.59 lakh crore in May.
Real-time gross settlement (RTGS) saw a marginal decrease in the volume of transactions but a 1.8% month-on-month increase in the value of transactions – from Rs 1.32 crore in May to Rs 1.42 lakh crore in June. Among other modes of retail payments, Immediate Payment System (IMPS) saw volumes grow from 116.6 crore in May to 120.4 crore in June, while the value grew a little less than 1% month on month from Rs 1.08 lakh crore to Rs 1.13 crore.
The average value of a UPI transaction has typically been 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.