In May June July, the usage of UPI (unified payment interface) is 24%higher than the IMPS. The aggregate number of transactions done through NPCI’s unified payment interface (UPI) stood at 1,234.5 million, 1336.9million, and1, 497.3 million respectively.
In this pandemic situation, there were a large number of job losses and salary cuts are happening in different sectors, due to this the spending and purchasing power of citizen were changed, this data is available from the National Payments Corporation of India (NPCI).
The total transition done through UPI in these 3 months amounted to Rs 7,707.6 billion, it was higher than all transactions done through the inter-bank immediate payment service (IMPS).
The UPI which is built on the IMPS platform, the output from the IMPS was decreased, which is for interpersonal transfer of funds as people are choosing more precautionary savings. IMPS is used by the people mostly for lending short-term loans to friends and family it also using for paying rent and other utilities.
UPI transaction raised 10 times compared to IMPS. The total value remains small as it becomes the preferred contactless option even if it is for small purchases. The official said that the usage of cash has been restricted due to COVID fear.
According to the data, NPCI supported the total volume of transactions of all platforms during May, June, and July which stood at 255.4 million,290.3 million, and 283.9 million, respectively. The total value of cash withdrawn during these three months was Rs 3,389. 4 billion. Similarly, the total volume of IMPS transactions in May, June, and July stood at 166.9 million, 198.9 million, and 222.1 million, respectively. The total value of transactions done through IMPS in these three months was Rs 6,021.2 billion.
In the future also the behaviour is likely as people choose more for precautionary saving the Reserve Bank of India (RBI) said in its July bulletin. In this pandemic situation in 2020-21 is expected to induce behavioural changes such as, increase in internet-based transactions vis-à-vis cash and card-based transactions.
The report released in July, the company said that around 45 percent of all transactions done through its platform was UPI-based, left behind transactions done through credit and debit cards, and even net banking.
“UPI is gaining important traction since the onset of lockdown. With time, contact-based payment models such as PoS (point-of-sale) machines will get replaced with new-age, contact-less mobile-based features such as dynamic QR (quick response) codes, AePS (Aadhaar Enabled Payment System), mATM, contactless biometric authentication, and contactless card payment solutions,” Razorpay had said in its report.