Despite UPI marginal fall in volume, BHIM witnessed 12% transaction growth in May

Despite Unified Payment Interface(UPI), an inter-bank transaction facility, marginal down in transactional volume for last month, Bharat Interface for Money (BHIM) UPI app has witnessed almost 16 per cent rise in the value of the transaction.

BHIM, according to the data by the National Payments Corporation of India (NPCI), saw 14.2 million of transactions for the month of May 2018, which is 12 per cent more than April's figure- 12.6 million.

The total value of transactions stood at Rs 5,748.5 crore. In terms of net additions, the number of transactions for BHIM grew by 1.56 million in May 2018, while the total amount transacted was up by Rs 775.8 crore.

In April, the number of transactions added 0.65 million, and the amount transacted had grown by Rs 133 crore.

The average amount per transaction also increased to Rs 4,059.7

At present, NPCI-developed BHIM is live on 92 banks and has seen over 28 million app downloads.

In May, UPI witnessed the first fall in transaction volume. The volume of the transaction recorded by UPI reached 189.48 million which was 190.08 million (a marginal decrease) for the preceding month(30 days).

Whereas in April, the UPI-based transaction volume witnessed 6.75 percent growth in comparison to March when it registered a mere 4 per cent uptake.

However, UPI witnessed a significant surge of 23 per cent in value of the transaction. As per NPCI data, the transaction value for May month was Rs 33,288.51 crore. In April, the transaction value grew by 11.78 per cent.

In addition to payment major Paytm, government-owned BHIM, PhonePe and Google Tez, FreeCharge and Mobikwik also had joined the unified payments ecosystem in recently.

Paytm had claimed 33 per cent of total UPI transaction for the month of April. Flipkart-owned Phonepe saw 42.4 million UPI transaction in partnership with Yes Bank.

Two years old, UPI has till now processed over Rs 1 lakh crore with 91 crore transactions. NPCI is also planning to launch UPI 2.0 for merchants.