UPI emerges as the final winner in terms of growth from last month

Since its launch in April last year, the Unified Payments Interface (UPI) channel has shown an unprecedented growth.

Last month, the aggregate volume of transactions through the UPI channel grew 85 per cent month-on-month (MoM) with 30.78 million of transactions. In terms of value, the MoM growth was 28 per cent with Rs 5,293.5 crore transacted using the payment interface, according to Reserve Bank of India (RBI).

However, the average ticket size of a UPI transaction has decreased to Rs 1,719, lower than the corresponding figure of Rs 2,486 for August.

UPI volumes have risen steeply in the last few months as more e-commerce players have joined the platform.

“UPI received a significant boost after it was made available on Flipkart and NPCI was working to on-board Amazon in a bid to further push UPI usage,” former managing director and chief executive officer of NPCI AP Hota had earlier told Financial Express.

Wallets and other prepaid payment instruments (PPIs) issued by eight non-banks witnessed a new trend where it saw a slight increase in the total transaction from the last month, but observed a fall in number of transactions.

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Wallets and other PPIs clocked Rs 2,760 crore, up 1.4% from August, on 87.5 million transactions, down 2.5% from the previous month.

Besides, among other modes of retail payments, the value of transactions made through Immediate Payment System (IMPS) rose 10 per cent month-on-month to Rs 71,760 crore, while the volume grew 9.5 per cent to 82.8 million.

Even the Unstructured Supplementary Service Data (USSD) channel, which is is meant for users of feature phones, recorded a 5 per cent rise in volumes to 0.2 million and 10 per cent in value terms from the last month to Rs 32.36 crore.

In this growth race, only the transaction made through debit and credit cards at point-of-sale (PoS) terminals recorded a m-o-m drop in usage. It fell 5.7 per cent in volume terms to 229 million. The aggregate value of card transactions slipped a little over 1 per cent from the previous month to Rs 45,194 crore.

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