Digital transactions saw a big spike after demonetization in November 2016, however, the pace of adoption was slower than what was anticipated. In December 2018, Unified Payments Interface (UPI), the country s flagship payments platform crossed Rs 1 trillion milestone, a growth of nearly 8-fold compared to the previous year. According to the data released by the National Payments Corporation of India (NPCI), UPI also achieved a monthly volume of more than 600 million, four times more than in December 2017. Also Read - PM Modi launches e-RUPI digital payment solution: What is it? Is it like Bitcoin? and more questions answeredAlso Read - e-RUPI: PM Modi announces to launch a new digital payments platform today
The Reserve Bank of India (RBI), released data for payments industry till November 2018, which saw a 27 percent rise in volume, and one percent fall compared to the same period till November 2017. Here, the forms of payment include mobile wallets, cards, and mobile banking. Card transactions saw a big growth of 22 percent in volume, and 18 percent in value in November 2018, compared to the same period in November 2017. Also Read - Apple adds UPI, RuPay, net banking on App Store: How to add new payment methods
Watch: How to use BHIM app
During the same period, mobile wallets saw a rise of 86 percent in volume and 72 percent in value, whereas UPI logged a growth of 400 percent in volume, and 753 percent in value. According to NPCI, simple, seamless and secure are three core features for the success of UPI that meets end-user needs of consumers, banks, merchants, and FinTech players.
UPI was a game-changer in the true sense with complete interoperability being driven on the front end using a mobile phone, with reduced friction while on-boarding and secured two-factor authentication, NPCI told Business Standard.
Speaking to the publication, B Madhivanan, ICICI Bank s chief technology, and digital officer said that UPI grew faster as it removed the layer of friction by replacing the IFSC code and account number with a unique UPI identity the Virtual Payment Address (VPA). And with Google Pay and WhatsApp including UPI platform for peer-to-peer payments, UPI infrastructure has seen further growth.
In August last year, NPCI introduced UPI 2.0 platform with features like overdraft facility, increased daily transaction limit and more. It is yet to go live, but experts believe that it will push average transaction values up by also pushing merchant transactions. Recently, the BHIM app had been giving a few troubles, especially when adding banks. NPCI has tweeted saying that a better, secure app is coming soon, and the update will likely include features from UPI 2.0 platform.