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Record Volumes As Digital Payments Thrive In Time Of Pandemic

CIO Insider Team | Monday, 3 August, 2020
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CIO Insider Team

The National Payments Corp of India (NPCI) operated various renowned digital channels stated that highest monthly transactions happened in July. This directs toward adoption of digital payment methods by Indians amidst COVID-19 pandemic.

Recording heavy transaction volume in the month of July, the Unified Payments Interface (UPI), Immediate Payment Service (IMPS), and Bharat Bharat Bill Payment System (BBPS) mentioned in a report on Saturday, high volume transactions on edtech, e-commerce sites, and online bill payments increased.

July 2020 witnessed record UPI transactions (1.5 billion) of Rs. 2.9 lakh-crore. It increased from 2.6-crore in June (1.34) billion transactions.

Hemant Gala, PhonePe’s Vice President of Payments and Financial Services (PhonePe uses UPI platform) said, “July 2020 is the record month for transaction amount and volume. We are satisfied to witness that efforts for reviving the merchant ecology (offline digital transactions and e-commerce payments) went to pre-COVID days.”

With high-value bank-to-bank transfers – 222 million transactions of 2.25 lakh-crore on July, IMPS witnessed a rise from 199 million and 2.06 lakh-crore in June.

From 17.64 million bills in June to 20.16 million bills in July, BBPS witnessed increase of amount from 2,969-crore to 3,707-crore.

With numbers of registered billers increasing three times from 245 in June to 748 in July, NPCI-functioned payment service, which is an integrated bill payment system, that uses banks and live billers, saw tremendous growth.

Raman Khanduja, the Chief Executive of Digital Payments Platform – Mintoak, said, “Spending increased in e-commerce and online education in June and the numbers raced up in July. Though offline retail payments are yet to catch up with the pace, as lockdown impacted negatively on small businesses in metro cities.”

The National Electronic Toll Collection transactions recovered from 247-crore of 10 million transactions in April during lockdown to 1,623-crore of 87 million transactions in July. The National Electronic Toll Collection powers Fastag payments on highways. It is according to NPCI data.

The increase in the National Electronic Toll Collection transactions tell that road traffic and intercity commute are increasing. Before lockdown, in February, it was 110 million Fastag transactions of 1,843-crore.

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