UPI emerges as fastest growing e-payment channel in October

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UPIMaintaining its momentum as reported in previous months, the Unified Payments Interface (UPI) has reported a further growth in October.

According to Reserve Bank of India (RBI), the UPI channel grew fastest on a month-on-month (m-o-m) basis in October in terms of volume of transactions.

The report also revealed that except Unstructured Supplementary Service Data (USSD), most of the retail digital payment modes have witnessed growth in terms of volumes in September and October.

While UPI’s volume grew by 149 per cent over September to 77 million, the value of transactions on the channel grew by 33 per cent to Rs 7,028 crore in October.

Likewise, Immediate Payment Service (IMPS) transactions too rose to 6.4 per cent m-o-m to 88 million and the collective transaction value rose 4.6 per cent to Rs 75,042 crore.

In addition to this, the volume of credit and debit card transactions at point-of-sale (PoS) machines grew 3 per cent over the September level in volume terms to 389 million and the value of transactions increased by 12 per cent to Rs 82,088 crore. This growth can be attributed to the impact of the festive season when the consumer spends typically inflate.

Prepaid Payment Instruments (PPI), mainly comprising of mobile wallets and prepaid cards, revealed a transaction volume of 245 million in October, an inflation of 2 per cent from the September figure of 245 million. The value of transactions grew by 6.6 per cent m-o-m to Rs 11,698 crore.

This inflation has expanded the ticket size of a wallet transaction to about Rs 477, higher than the figure of Rs 457 in September.

Subsequently, the volume of National Electronic Fund Transfer (NEFT) transactions grew just by 0.7 per cent m-o-m to 158.78 million in September, while the value of transactions dropped by 2.3 per cent to Rs 13.85 lakh crore between September and October.

The volume of transactions in terms of the USSD channel declined by 10 per cent m-o-m to 0.18 million and the total value of transactions dropped by7.6 per cent to about Rs 30 crore.