UPI transactions cross 1 B mark for 6th month, but drops by 6 pc in volume
The National Payments Corporation of India (NCPI)-owned payment interface Unified Payments Interface (UPI) has captured the imagination of Indians. Its convenience and ease of use have led to the proliferation of the world'’s first smartphone payment ecosystem where there is no third party involved. It crossed 1 billion in October 2019 and has since crossed 1 billion every month.
However, the Yes Bank moratorium and the COVID-19 outbreak have reduced the total number of digital transactions in March. The month-on-month volume in February, according to the NPCI, was 1.33 billion transactions amounting to Rs 2,22,517 crore or Rs 2.22 trillion in February. The volume fell to 1.25 billion in March or a six percent drop in transacted volume. In terms of value, the transactions fell by 7.2 percent.
Fintech has been challenged, during this Coronavirus crisis, because very few retailers are operational and the entire restaurant ecosystem has been shut. The lockdown has hurt many businesses.
Other digital services such as Aadhaar-enabled Point of Sale (AePS) had 181.81 million transactions to the tune of Rs 10,170.31 crore, the National Electronic Toll Collection (NETC) had 84.55 million transactions worth Rs 1421.01 crore and the Immediate Payment Service (IMPS) also recorded 216.82 million transactions worth Rs 2.01 lakh crore.
UPI transactions are projected to increase this month as people are contributing to the ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund)’. Those interested can make micro-donations and use the UPI (BHIM, PhonePe, Amazon Pay, Google Pay, PayTM, Mobikwik) to contribute to the fight against COvID-19. The address is [email protected]
Also, the government is opening up the supply chain slowly for essentials to reach the consumers. Once this happens, the number of UPI transactions in retail stores will also increase. The next month is going to be crucial for consumption as economists say that the coronavirus pandemic has very much destroyed this year'’s growth and everyone is realigning their business plans to survive.
(Edited by Javed Gaihlot)