Digital Payments in India: UPI Stands Triumphant Over Debit and Credit Cards

The unprecedented growth of UPI Payments in India during 2019 was largely driven by the improved high-speed mobile network and internet infrastructure. People are now preferring UPI transactions over Debit or Credits now. in 2019 the total volume of UPI transactional reached 10.8 billion, a record 188% Y.o.Y growth.

Must Read

Looking For A Job At Amazon? Jeff Bezos Is Willing To Hire Everyone If……

The global pandemic Covid-19 has thrown the whole world into complete chaos. Amid this perilous situation, one...

CII Suggests India Implement Its Own Version Of “Helicopter Drop” Amid The Covid-19 Outbreak

After Canada, Singapore, Australia and the US, it's time for India to work on a financial plan...

Facebook To Invest In Reliance Jio To Redefine The Market Equations in India?

Since the launch of Reliance Jio in the year 2016, Reliance Industries, owned by Mukesh Ambani, the...

UPI or the Unified Payments Interface has become one of the fastest-growing payment platforms in India and has draw attention of global policy-makers as well. It is now regarded as an important institutional and public policy innovation.

On Thursday, revelations from a new report suggested that in terms of volume, UPI happens to be the most preferred mode of payment followed by debit cards, IMPS (Immediate Payment Services) and credit cards.

Advertisements

The Indian Digital Payments report by the payments company Worldline India (WI) further went on and reported that in 2019 UPI recorded a transactional volume of 10.8 billion with a 188% Y.o.Y increase. It was also added that UPI happened to be the fastest product to reach one billion transactions in a singular month in 2019 since it launched in the month of August in 2016.

UPI happened to facilitate transactions worth ₹18.36 trillion in terms of vale with a 214% increase in 2019 when compared with the previous year. As of December 2019, the total number of banks providing UPI services stands at 143 as 9 more banks were added in the UPI ecosystem in 2019 itself.

It is P2P (person-to-person) transactions for which major digital transactions platforms are being mostly utilised for rather than P2M (person-to-merchant) transactions.

When it comes to Immediate Payment Service (IMPS) a whopping 2.3 billion transactions in volume were facilitated, a record 55% YoY increase. In terms of value, IMPS also happened to record ₹21.8 trillion since 2019. Over 165 banks came on board under the IMPS ecosystem in 2019 which brought the total number of banks providing the payment service up to 559 by the end of the previous year.

IMPS still happened to remain in the first position throughout 2019 followed immediately by UPI in terms of value. The report also suggested that the value of debit and credit cards remained the same through 2019. Combined transactions recorded together by UPI, debit cards, IMPS and credit cards of over 20 trillion in volume and of over ₹54 trillion in value was observed in 2019.

Advertisements

Over the past few years, a full range of Aadhaar enabled banking services through AePS was observed in India. A volume of 2.3 billion Aadhaar Enabled Payment System (AePS) transactions (ONUS, OFFUS, DEMO AUTH and eKYC) were recorded in 2019 which shows a 12 Y.oY growth. The value of AePS transactions stands at ₹1 trillion as of 2019, a 31% YoY growth.

Worldline India accessed public databases for transactions to conduct their research together with the transactions processed by them in the year 2019.

Way Forward For UPI In 2020

As of January 2020, 1305.02 million UPI transactions amounting to 2,16,212.92 crores were processed by 144 banks. Coming to card transactions, a whopping 4,137.41 million transactions were completed through either debit or credit cards in India during fiscal Q2 2019-20.

Source: GraphFarm

The above growth chart of UPI transactions clearly indicates that UPI could rapidly become a preferred payment option for merchants, with its relatively cheap infrastructure requirements, and widespread consumer adoption. However, a sustainable boom in digital payments requires an equal focus on the entire value chain from banks to digital payments service providers, merchants, and most importantly the consumers.

UPI’s growth spurt has majorly been driven by its ease of use, owing to a combination of consumer-facing digital payments platforms and an active push by the Indian government. Google Pay, PhonePe, Paytm emerged as the real game-changers for peer-to-peer (P2P) UPI payments, which would further be fueled as WhatsApp, currently in beta stage, joins the race.

As SMEs start to understand the benefits of digital payment acceptance the peer-to-merchant (P2M) channel has also started gaining momentum. With the launch of UPI 2.0 last year, the platform is attracting a healthy share of merchants and helping with the digitisation of the entire payments ecosystem by enabling low-value, high-frequency transactions.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Facebook Users Who Dumped It Earlier Are Returning Back To The Platform!

Facebook Inc. (NASDAQ:FB) is gaining ground and it's no less than a surprise to know who is...

Zoom iOS App Caught Sharing User Data With Facebook! Are You Using It?

With the growing number of people worldwide now trying to adapt to the ‘work-from-home’ situation amid the Covid-19 outbreak, Zoom which is...

A New WhatsApp Scam Is So Lucrative That You May Find Difficult To Resist

As the usage of social media and mobile messaging apps has surged tremendously worldwide due to the social distancing and lockdowns to...

Switch Off Your Amazon Alexa If You Are Working From Home!

Weeks after the widespread of the coronavirus, countries continue to go into lockdown mode for more weeks to come. People are advised...

Facebook Portal TV: Once Mocked Widely, Now Sold Out Completely!

Two years go, Facebook Inc. (NASDAQ:FB) released the first device in their Portal video calling series. This move brought them a lot...

Facebook To Invest In Reliance Jio To Redefine The Market Equations in India?

Since the launch of Reliance Jio in the year 2016, Reliance Industries, owned by Mukesh Ambani, the richest man in India, has...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This