The National Payments Corporation of India (NPCI), which operates all retail payments functions in the country, recorded 1 billion transactions for the month of July, it announced in a statement. NPCI started its services in January 2010 with a monthly transaction volume of 50 million. It has grown 20X in seven years. But a major fillip came from demonetization last November, after which digital transaction shot up on all platforms. The United Payments Interface (UPI), which is supported by over 50 banks is a major driver of NPCI’s growth. Also Read - Lost your Aadhaar card? Here's how to download Aadhaar card onlineAlso Read - How to apply for Aadhaar card for your newborn
UPI transactions grew 10 percent to nearly 12 million in July. A month prior to that, it crossed Rs 3,000 crore in transaction value, according to NPCI data. About 22 percent of these are merchant-based transactions. A host of major merchants like Amazon, Uber, Ola and Android Pay have either integrated or are in the process of integrating UPI on their platforms. Transactions on BHIM, RuPay, point-of-sale and Aadhaar grew as well. ALSO READ: Uber, Amazon are integrating UPI; Google, WhatsApp to follow: Report Also Read - Now you can withdraw money from an ATM without using a card; here's how
Most of the July spike came from the Aadhaar Enabled Payment System (AEPS). Its biometric authentication-based payments are gradually becoming commonplace, especially in rural markets. Highest growth has been seen in the mobile payments and Aadhaar-based payments. This change was achieved by way of adding new products to NPCI s portfolio and widening the membership of all products,” AP Hota, MD & CEO, NPCI, said in a statement. ALSO READ: Digital India: Aadhaar-based payments grow six-fold since demonetization
NPCI now looks to clock 1 billion transactions per day in a few years. That’s ambitious, much like the Indian government’s target for FY18. It wants to process 25 billion digital payments transactions by that period. Last year, the volume of digital payments was 9.2 billion of which 3.5 billion had been contributed by NPCI. This year, it aims to contribute 11 billion. It gives us a great deal of satisfaction that NPCI has truly emerged as the powerhouse of all financial transactions in India,” Hota added in the statement.