What can be seen as a sure sign of Indians adopting mobile-based digital payments over cash during the ongoing coronavirus epidemic, Unified Payments Interface (UPI), the highest volume in July for 1.49 billion transactions for the second consecutive month Is recorded .
The channel, run by the National Payments Corporation of India (NPCI), saw 1.34 billion transactions worth Rs.2.61 lakh crore processed in June. The transaction value of Rs.90 lakh crore in July is also a record, which is the latest data released on Saturday by NPCI.
The ‘V-shape’ rebound comes on the back of a steep decline seen in the months of March and April during a nationwide lockdown, when the popular instant payment service Co-Covid-19 lost about 25% of transactions over the months.
Experts have attributed the increase in digital payments during the epidemic to consumers as a sign of an epidemic-induced payment behavior change.
The growing count of digital payments amid aggressive campaigns by NPCI, banks, the Reserve Bank of India and the Government of India has prompted users to switch from cash to ‘contactless’ payment modes.
Meanwhile, the volume of transactions recorded on most retail payment channels operated by NPCI has either exceeded the pre-Covid-19 level, or data has shown.
According to the NPCI data, transactions have been recorded at the National Electronic Toll Collection (NETC), which continues the decision-making payment on the highway even in July.
A total of 87 million transactions worth Rs 1623 crore were processed almost eight times from April to June when only 10 million transactions worth Rs.247 crore were processed.
Recovery in electronic toll volume is important because it indicates the return of road traffic and intercity traffic. For comparison, February saw a record 1108 Fastag transactions worth Rs.1843 crore.
Similarly, the BBPS channel has also seen an increase in transactions as customers are now getting comfortable paying their bills online.
Continuing the trend since June, BBPS recorded the highest 20.16 million transactions of Rs.707 crore processed on its platform in July. This is almost 25% more than the Rs 1495 crore transaction processed on the platform in February before the epidemic.
According to the data, IMPS also made 222 million transactions worth Rs 22.2 crore in accounts used for immediate bank-to-bank fund transfers. IMPS was calculated at 19 million rupees 2.980 lakh crore in June.