Sunday March 29, 2020
Home India UPI Continues...

UPI Continues To Remain The Most preferred Mode of Payment in India

The country has witnessed full range of Aadhaar enabled banking services through AePS over the past few years

0
//
UPI
UPI is perhaps the fastest product to hit 1 billion transactions-a-month in 2019 since its inception in August 2016. Wikimedia Commons

Unified Payments Interface (UPI) remained the most preferred mode of payment in terms of volume followed by debit cards, Immediate Payment Services (IMPS) and credit cards, said a new report on Thursday.

UPI recorded a transaction volume of 10.8 billion in 2019, a year-over-year increase of 188 per cent, said the report from payments company Worldline India (WI). “UPI is perhaps the fastest product to hit 1 billion transactions-a-month in 2019 since its inception in August 2016,” said the “India Digital Payments Report 2019”.

The findings of the report suggest that in India, digital payment products are being primarily utilised for person-to-person (P2P) transactions than person-to-merchants (P2M) transactions.

In terms of value, UPI facilitated transactions worth Rs 18.36 trillion, up 214 per cent from 2018. Nine banks were added in UPI ecosystem throughout the year, bringing the total number of banks providing UPI services to 143 as of December 2019.

Some of the key factors that powered UPI’s transactions growth in 2019 are adoption of UPI 2.0 features by banks, enabling payments for IPO applications, facilitating Foreign Inward Remittance service, supporting donations for several relief programs, and numerous cashbacks and discounts offered by banks and non-bank players, said the report.

Immediate Payment Service (IMPS) recorded 55 per cent year-over-year increase by facilitating about 2.3 billion transactions in volume. It clocked Rs 21.8 trillion in terms of value, up 41 per cent from 2018.

In 2019, it on-boarded 165 banks under its ecosystem bringing the total number of banks providing IMPS services to the customers of 559 banks by end of 2019. “In terms of value, IMPS attained the ‘numero uno’ position throughout the year followed by UPI. Value of debit and credit cards remained nearly the same throughout the year,” said the report.

Credit Card, Payment, Credit, Card, Money, Business
Unified Payments Interface (UPI) remained the most preferred mode of payment in terms of volume followed by debit cards, Immediate Payment Services (IMPS) and credit cards. Pixabay

In 2019, UPI, debit cards, IMPS and credit cards together recorded a combined transactions volume of over 20 trillion and combined value of over Rs 54 trillion, said the report. The country has witnessed full range of Aadhaar enabled banking services through
AePS over the past few years.

In 2019, the total volume of Aadhaar Enabled Payment System (AePS) transactions (ONUS, OFFUS, DEMO AUTH and eKYC) stood at 2.3 billion, achieving year-over-year growth of 12 per cent. The value of transactions achieved a milestone of Rs 1 trillion in 2019 with year-over-year growth of 31 per cent, said the report. For the research, Worldline analysed transactions available in public databases as well as transactions processed by the company in 2019.

ALSO READ: OPPO India Unveils New Smartphone “A31” At a Starting Price of INR 11,490

Worldline India (WI) is wholly owned by Worldline SA, a leading payments company in Europe that is listed on Euronext Paris. Worldline entered India in 2010 with the acquisition of Venture Infotek followed by the acquisition of MRL Posnet in 2017. (IANS)

Next Story

India’s Lockdown Disrupts Functioning of Amazon and Flipkart

Amazon India Delivery and functioning of Essential Goods via. E-commerce companies Disrupted

0
Virus Outbreak Amazon
India's coronavirus lockdown is disrupting e-commerce companies including Amazon and Flipkart. Pixabay

India’s coronavirus lockdown is disrupting e-commerce companies including Amazon and Flipkart, despite government assurances it would not, four sources familiar with the matter told Reuters.

Differing state and district level regulations relating to the 21-day lockdown, which began on Wednesday, are hindering operations, the sources said on Friday, with e-commerce firms finding it difficult to get curfew passes for delivery staff.

The disruptions highlight the difficulties of ensuring the supply of essential goods to 1.3 billion people during the shutdown in India, which has so far reported 724 cases of coronavirus and 17 deaths. Most of Amazon’s 60 plus fulfillment centers in India are shut and the U.S. company is in talks with state authorities to try to reopen them, three of the sources said. Industry executives say local authorities have not followed guidelines, stopping deliveries and warehouses from operating.

Virus Outbreak Amazon
A sign is lit on the facade of an Amazon fulfillment center. VOA

“It’s worse than one can think,” one source said, while a second added that only a “miniscule” number of Amazon warehouses were operating, citing this as a key reason for disruptions. Even when operations do begin to return to normal, it will only be in major cities, the second source added.

Amazon said in a statement that its top priority was to deliver the products which customers need the most and it was seeking urgent help from federal government and local authorities with detailed on-the-ground operating procedures. In New Delhi, Amazon’s Pantry service was suspended and the delivery slot for essential goods, such as oil and soaps, was shown as being April 26.

“There are clear guidelines provided by Government to enable essential services, and so we are working with the relevant authorities to ensure we are able to operate,” Amazon said on Twitter in response to questions from users in India.

Indian trade minister Piyush Goyal held a meeting with e-commerce executives on Thursday and said the government was “committed to ensuring that essential goods reach the people.”

Also Read- Effects of Quarantine on Mental Health and Relationships

Walmart-owned Flipkart has also been hit, with some grocery items which had been available earlier on Friday in New Delhi intermittently going out of stock. A source familiar with the situation said Flipkart was facing challenges with last-mile delivery of goods once they leave its warehouse due to restrictions on movement.

Flipkart said in a statement it had resumed grocery operations and there was a significant spike in orders. “We are enhancing capacity to meet the increase in customer requirements,” it said, adding it had received support from local and federal authorities.  (VOA)