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Tag: upi transactions

  • UPI transactions moderate from March peak to ₹19.6-lakh crore

    UPI transactions moderate from March peak to ₹19.6-lakh crore

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    Mumbai The Unified Payments Interface (UPI) saw both the number and value of transactions moderating by about 1 per cent on month from the record high seen in March 2024.

    Transactions worth ₹19.64 lakh crore were processed during April 2024, 0.7 per cent lower than the record of ₹19.78-lakh crore seen in the previous month. The value of transactions was 40 per cent higher compared with April 2023, as per data by the National Payments Corporation of India (NPCI).

    The end of a financial year traditionally sees a lot of transactions closer to the ₹1 lakh limit as a lot of merchants, business owners and individuals square off transactions leading to higher value and volume of transactions.

    The number of transactions on the UPI network fell 1.0 per cent to 1,330 crore during the month from the March peak level of 1,344 crore transactions. On year, the volume of transactions was 50 per cent higher. On-year growth in UPI transactions consistently remained over 40 per cent for the value of transactions, and above 50 per cent for volume of UPI trades in 2023 and FY24.

    “UPI volumes and value continue to grow on a year-on-year basis, reflecting the continued focus on digital adoption across the country and the customer convenience that UPI offers. The month-on-month reduction is not a comparable factor given that march is usually the month with higher volumes during the year,” said Vivek Iyer, Partner, Grant Thornton Bharat.

    In FY24, the UPI platform processed 13,115 transactions aggregating to ₹199.29-lakh crore compared with 8,376 crore transactions worth ₹139-lakh crore in FY23. In terms of the total transactions processed during the year, the volume of transactions was up 56.6 per cent whereas value of transactions was 43.4 per cent higher.

    UPI transactions are expected to breach 100 crore transactions per day by FY27, as per a report by PwC India, which projects UPI to dominate the retail digital payments landscape, accounting for 90 per cent of total transaction volumes over the next five years.

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  • UPI effect: Average ATM visits halve to 8 times a year

    UPI effect: Average ATM visits halve to 8 times a year

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    Every ₹1 increase in value of UPI (unified payments interface) transactions is leading to 18 paisa decline in debit card transactions, indicating a person is now making a visit to ATM on an average 8 times a year, down from 16 visits earlier, according to State Bank of India’s economic research report “Ecowrap”.

    The aforementioned observation is on the basis of monthly time series data analysis for the period of April 2016 to April 2023.

    Cash withdrawal

    Research by SBI’s economic research department (ERD) found that cash withdrawal through debit cards at ATMs has declined from November 2018, ceding way to UPI.

    “UPI has not only altered the payment landscape of India but is also significantly altering the purpose for which currency is used hitherto acting as investment to speculation (trading) conduit,” said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.

    ERD’s research suggests that rural and semi-urban areas are now accounting for 60 per cent of share in UPI value/ volume, dismantling the popular perception that metro/urban areas are hotbeds of digital payment adoption and innovations.

    Top 15 States accounted for about 90 per cent of share in value/volume.

    Among all, UPI has emerged the most popular and preferred payment mode in India pioneering Person to Person (P2P) as well as Person to Merchant (P2M) transactions in India accounting for about 73 per cent of the total digital payments, per Ecowrap.

    ERD’s analysis shows that the volume of UPI transactions has increased multi-fold from 1.8 crore in FY17 to 8,375 crore in FY23. The value of UPI transactions has also increased handsomely, from just ₹6,947 crore to ₹ 139-lakh crore during the same period, a jump of 2004 times.

    “Interestingly, CIC (currency in circulation) has moderated to reach 12.4 per cent of GDP in FY23, almost same level as 2015-16. The yearly growth in CIC has also declined to 7.9 per cent in FY23 from 16.6 per cent in FY21,” ERD said.

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  • 99.9% of UPI transactions are bank account-to-account: NPCI

    99.9% of UPI transactions are bank account-to-account: NPCI

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    After it introduced interchange of up to 1.1 per cent on UPI transactions above ₹2,000 made through prepaid instruments, cards or wallets, the National Payments Corporation of India (NPCI) clarified on Wednesday that 99.9 per cent of UPI transactions are done directly from bank account-to-account, and will not be impacted by the new norms.

    “Traditionally, the most preferred method of UPI transactions is linking the bank account in any UPI-enabled app for making payments which contributes over 99.9 per cent of total UPI transactions. These bank account-to-account transactions continue to remain free for customers and merchants,” said NPCI in a release.

    Following the inclusion of Prepaid Payment Instruments (PPI Wallets) in the interoperable UPI ecosystem, NPCI last week introduced an interchange fee on merchant transactions, with effect from April 1.

    The charge will be levied on transactions of over ₹2,000 made to online merchants, large merchants and small offline merchants. Further, PPI issuers will need to pay 15 bps as a “wallet loading service charge” to the remitter bank for loading over ₹2,000 in the prepaid wallet. NPCI will review the interchange pricing by September 30.

    The norms had raised concerns regarding additional charges on UPI transactions in some sections of the market, who feared that this might make transactions costlier for merchants and customers alike.

    “The interchange charges introduced are only applicable for the PPI merchant transactions and there is no charge to customers, and it is further clarified that there are no charges for the bank account to bank account based UPI payments (normal UPI payments),” said NPCI on Wednesday. 

    With this addition to UPI, customers will have the choice of using any bank account, RuPay Credit card, and prepaid wallets on UPI-enabled apps, it added.

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  • UPI transactions up 650% at semi-urban and rural stores: PayNearby

    UPI transactions up 650% at semi-urban and rural stores: PayNearby

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    UPI transactions across rural- and semi-urban retail counters of PayNearby rose 650 per cent year-on-year for the 10-month period ended October 31. In terms of volumes, UPI transactions were higher by 500 per cent.

    Overall, there was a 25 per cent rise in value of assisted financial transactions via retail counters, reflecting a behavioural shift and the growing adoption of digital transactions in these regions, said the company in a release.

    The findings were part of the second edition of its report on assisted financial transactions titled ‘Retail-O-Nomics’. The report is based on transactions across 10 lakh retail touch points, such as kirana stores, mobile recharge stores, medical shops, customer service points and travel agents.

    PayNearby said its mPOS business grew over 100 per cent, with a 25 per cent increase in demand for micro ATMs and mPOS instruments.

    Cash withdrawal

    Cash withdrawal business through micro ATMs and AePS rose 8 per cent, led by a 25 per cent increase in cash withdrawals through micro ATMs.

    “This shows the growing role played by this portable digital device in ensuring easy accessibility of bank accounts, while helping merchants use cash-at-store more effectively and augment their income,” it said, adding that there has been a dip in average cash withdrawals to ₹2,595 from ₹2,620.

    The cash collection business, including EMIs, rose 200 per cent, with a monthly average of ₹1,400 crore. Increased demand was witnessed across most cash collection processes, including collection from logistics and e-commerce companies and payment of insurance premiums at retail stores.

    Bill payments services at local stores rose 12 per cent, mobile recharges by 18 per cent, flight bookings by 8 per cent, rail bookings at 6 per cent, and micro credit for MSMEs by 263 per cent, it said.

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    BL Mumbai Bureau

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  • Virat Kohli stopped Diwali shopping: Sharp fall in UPI transactions during India’s batting against Pakistan

    Virat Kohli stopped Diwali shopping: Sharp fall in UPI transactions during India’s batting against Pakistan

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    T20 World Cup: Virat Kohli’s masterclass innings against Pakistan in the first T20 clash on Sunday stopped online shopping for some time, according to a graph shared by an investment officer. The graph, which tracked online transactions during the day, shows online transactions stopped during India’s batting and it nosedived from 5 to 6 pm – when Kohli was at his best.

    The graph was shared on Twitter by Mihir Vora, Chief Investment Officer at Max Life. It shows a high Diwali shopping rush in the morning from 9 am to 1:30 pm – the time when the game began.

    After the match started, online transactions remained muted during Pakistan’s batting. However, it started declining further as India’s batting started. At one point after 5 pm, the number plunged. And as the game was over, shopping resumed.

    “Virat Kohli stopped India shopping yesterday!!UPI transactions from 9 a.m. yesterday till evening – as the match became interesting, online shopping stopped – and sharp rebound after the match,” Vora wrote on Twitter.

     
    Played at Australia’s Melbourne Cricket Ground (MCG), the first T20 game between the two arch-rivals was a nail-biting thriller. Also, this was one of the best innings by Kohli.

    India were chasing 159 but faltered very early as it lost four wickets in the first six overs when the score was still 36. But Kohli held his nerves. He dragged the game for 10 overs and then decided to take charge. His unbeaten 82 off 53 and Hardik Pandya’s 40 off 37 deliveries pulled off a stellar show at MCG.

    After winning the match, Kohli said this was one of his “finest innings”. He said the magnitude of this match was different and he found himself lucky to play such important games. “I think people will now celebrate Diwali happily. I wish everyone a happy and prosperous Diwali,” Kohli said.

    Former South African cricket player AB de Villiers said: “Virat, that was incredibly special my friend! The best of the best.”

    Former ace opener Sachin Tendulkar said it was undoubtedly the best innings of Kohli’s life. “It was a treat to watch you play, the six off the back foot in the 19th over against Rauf over long-on was spectacular,” he said.

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