Digital payments increased by 57% a year of after year in the last fiscal with mobile wallets more than doubling and card payment which was increased by 44%, helped by government push particularly after the demonetization which happen last year.
According to the National Payments Corporation of India (NPCI) which claims that “The Aadhar-linked payment systems and the Unified Payments Interface (UPI) a government backed payment system, have also helped to boost to digital transactions in 2016-17, when the total number of such transactions crossed 8.8 billion.”
NPCI, Managing Director, AP Hota said “We are witnessing a huge leap in transactions on RuPay cards which are executed on both in trading terminals and on the Internet, along with significant growth on the UPI (Unified Payments Interface) platform, which we hope will be more effective next year and help us to achieve the goal of 25 billion transactions every year.
Armed with numerous of options like Bharat QR – a QR code network for making a payment with any card which will help to increase a digital payments at point of sales. BHIM (Bharat interface money) mobile payment app for UPI transactions, and several payment systems, NPCI is confident on popularizing of digital payments even for small transactions.
Hota added “This year, we have received over 1 lakh BharatQR codes which have distributed among the outlets, and by next year we have a plan to generate 93,000 QR codes.”
Despite the fact that UPI and AEPS are the latest modes of transactions the government insists on, mobile wallet and plastic cards have also helped digital payments to show a significant growth.
Mobile wallets rose to 1.1 billion transactions from 603 million transactions last year, and payments on cards reached to 2.8 billion transactions against 1.9 billion transaction last year.
Hota said that RuPay, an internal network of payment cards, has reached a 361 million internal cards in circulation and about 15 million international cards. The company added the ATM market is about 33% and in PoS terminal it is about 17% only.
“By this year, we saw that over 195 million transactions of RuPay cards on PoS terminals band about 87.5 million transactions for online transactions,” He added. “Currently only 7-8 banks issues all their incremental cards in RuPay networks.”
New ways of digital payments, for which special attentions of the central government, are strategically sponsored by banks and payment companies to bring the rural poor in digital form. “UPI, including BHIM transaction which reached to 16.7 million transactions in 2016-17 and that of 335 million transactions were achieved for AEPS in general,” Hota said.
While these new modes have only just begun, Hota hopes that the initiatives like ATM-based digital transactions at a fair-price stores and coordinated push in business correspondent-level activities through digital modes will increase the adoption of AEPS in Rural areas.