Indian domestic payment networks report positive growth

Indian domestic payment networks report positive growth

National Payments Corporation of India (NPCI) is reporting positive momentum for transactions across its domestic RuPay, Unified Payments Interface (UPI) and Aadhaar-Enabled Payment System (AePS) networks for the fiscal first quarter.

Its goal is to hit 11 billion transactions by the end of the fiscal year, writes Paybefore, Banking Technology‘s sister publication.

RuPay, India’s domestic debit network, reported monthly point-of-sale and e-commerce transaction volume at 40 million transactions valued at about INR 5o billion ($776 million) during Q1. The government’s ban on certain high-value currency notes has contributed to an increase in transaction volume for RuPay. NPCI also points to contactless uses cases in transit as “poised to significantly contribute” to future RuPay transaction volume.

“The nation has taken a target of achieving 25 billion digital payments transactions mark in FY 2018,” says A P Hota, managing director and CEO of NPCI. “Last year, the volume of digital payments was 9.2 billion, of which 3.5 billion had been contributed by NPCI. This year, we are aiming to contribute about 11 billion digital transactions,” he says.

Recently introduced BHIM and BHIM Aadhaar are also showing positive trends, according to NPCI. BHIM is a smart mobile phone-based app that enables simple, easy and quick payment transactions via UPI.

BHIM Aadhaar is based on the aforementioned AePS. Aadhaar is a biometrics-based, government-issued identification. AePS volume was 50 million, 60 million and 70 million for April, May and June 2017, respectively. Launched by Prime Minister Shri Narendra Modi this April, BHIM Aadhaar is currently being offered by more than 134,000 merchants.

Meanwhile, UPI transaction volume has topped ten million transactions valued at INR 30 billion ($465 million).