The popularity of UPI has been rapid, especially in the last one year
Transactions via UPI have surpassed mobile wallet payments in terms of volume of transactions as well as value
NEW DELHI :
Unified Payments Interface (UPI)-based digital payments clocked 754.54 million transactions worth ₹1.46 trillion in June, rising 2.8% sequentially, according to data from National Payments Corporation of India (NPCI).
UPI has witnessed a rapid rise in popularity, especially over the last one year, with an increasing number of banks and wallet and digital payment companies such as Google Pay, PhonePe, Paytm, MobiKwik, among others, adopting it as one of their preferred payments options. It is considered safe, cost-effective, and fast. It is preferred because it allows mobile-based payments with the option of transferring money 24x7 without giving out the beneficiary’s bank account details. The payments system was developed by NPCI, an umbrella organization for all retail payments in the country.
Transactions via UPI have also surpassed mobile wallet payments in terms of volume of transactions and value. There were 378.87 million wallet transactions worth ₹155.48 billion in April compared with 781.79 million UPI transactions worth ₹1.42 trillion in the same month, according to data from the Reserve Bank of India (RBI).
Digital payment is a key focus area of the government and RBI and has been taking steps to give customers safe, secure, and cheaper of options for non-cash payments.
The banking regulator has waived all charges on fund transfer via Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) from 1 July to make online money transfer cheaper.
“Many consumer apps today offer the UPI payment option and, therefore, depending on the various promotions, the usage of the consumer apps vary (on a month-on-month basis). Therefore, corresponding UPI transactions may also see varying usage pattern," said Mandar Agashe, founder and vice chairman of payments solution provider Sarvatra Technologies.
“UPI transactions in bank apps have been showing steady growth in the number of customer transactions as well as amounts especially in semi-urban and urban areas," he said.