Mobile wallet-based transactions witnessed an increase for the first time in five months, clocking transactions worth ₹15,990 crore in March, an increase of 12% from the preceding month, Reserve Bank of India (RBI) data shows.
There were 384.89 million transactions in March as compared with 345.03 million in February worth ₹14,279 crore.
The growth can be attributed to the year-end phenomenon when monetary transactions usually increase.
There has been a 30% year-on-year jump in 2018-19 in terms of value at ₹1.83 trillion and 37% growth in volume of transactions at 4.13 billion as compared with 2017-18.
“Mobile wallet trends need to be looked at against the backdrop of a larger digital payments adoption, which is on a positive trajectory. Over time, all payment methods will have relevance and find their niche use cases," said Vivek Belgavi, partner at PwC India.
Transactions through mobile wallets started declining after hitting an all-time high in October, both in terms of value and volume. Around 368.45 million transactions amounting to ₹18,786 crore took place in October.
The downtrend in mobile-wallet transaction could be directly proportionate to the sustained increase in transactions through the Unified Payments Interface (UPI), which hit a record high of 799.54 million worth ₹1.33 trillion in March, a massive jump from the 93,000 transactions when it was launched in August 2016, National Payments Corp. of India data showed.