art2
  •  
  •  
  •  
  •  
  •  
  •  
  •  
23

The Digital India Program is the flagship program of the Government of India with the vision of transforming India into a digitized society and knowledge economy. “No face, no paper, no cash” is one of the famous roles of Digital India. Digital payments can be used in a variety of ways as part of promoting cashless transactions and transforming India into a less cash society.

Digital Payment Rise Recorded

With the Covid-19 pandemic, many digital payments were accepted during the collapse of 2020, resulting in a significant increase in transaction volume and value. However, changes in payment habits seem to be more permanent. Digital payments followed the same growth rate in 2021 compared to 2020.

For example, the increase in UPI transaction volume in September 2020 was 88% compared to the volume in September 2019. However, sales in September 2021 increased by 103%. Similarly, the value growth of UPI transactions was very strong at 98% in 2021 compared to the same month last year.

As of August 27, the currencies in circulation have exceeded Rs. 2.91 billion and cash continues to grow in the economy, but almost all digital payments such as UPI, real-time gross settlement, RTGS, NEFT, credit cards, etc. The method is also preferred and has increased significantly.

Digital Payment Methods in India

• Banking Cards (Debit/Credit/Cash/Travel/Others)

• Unstructured Supplementary Service Data (USSD)

• Aadhaar Enabled Payment System (AEPS)

• Unified Payments Interface (UPI)

• Mobile Wallets

• Internet Banking

• Mobile Banking

Sharp Upward Trend

The data shows that UPI has grown the most, accounting for almost half of all digital payments in the current fiscal year. Based on the analysis of the digital payment volume, the UPI share has increased steadily from 27.38% in 2019-2020 to 49.1% in 2021-22.

Bankers and payment actors point out that user behavior has changed over the years and that digital payments and banking have been fully accepted by customers and that it is unlikely to use banks’ physical methods for certain payments after the outbreak.

Festive Season Affair with Digital Payment

The ceremonial season in India saw 60 percent of consumers who use digital payments several times a week, according to the study of YouGov and ACI around the world. The frequency of digital payments has increased by 57 percent since last year, only 6% of respondents in research that do not intend to use digital payments during the holiday season.

The latest national payment company (NPCI) showed that UPI was 3.65 billion and INR 6.54 trillion in September and defeated all previous cases in both transactions and value. Monthly deals doubled on the UPI platform for almost a year, when 1.8 billion transactions worth INR 3.29 trillion monthly.

Statistics from Statista Research showed that UPI service providers included a total of 2.8 billion digital payment transactions in June 2021, which is worth more than five trillion Indian rupees. One of the 2.8 billion transactions with Walmart Subsidiary PhnePe was 46% and GooglePay was 35%. The third main player Paytm with a share of almost 12%.

Copy link
Powered by Social Snap