India is truly going cashless. An abrupt rise is seen in BHIM UPI transactions.
According to a study conducted by The National Payments Corporation Of India (NPCI) in March 2020, the transactions have doubled to 273 crores. The government of India visioned to transform India into a digitally empowered society and information economy.
The Digital India programme is the largest programme of the Government of India and its acknowledged role is to be "faceless, paperless, and cashless."
Around 125 crore transactions were processed via BHIM UPI in March 2020. The total amount of UPI transactions during the month was Rs 5,04,886 crore, compared to Rs 2,06,462 crore a year earlier.
In March 2021, the real-time settlement with IMPS processed 36.31 crore transactions worth Rs 3,27,234.43 crore and the BHIM UPI transactions were 229 crores valued at Rs 4,25,062 crore.
The NCP data revealed the Bharat Billpay transactions of 3.52 crore of Rs 5,195.76 crore and the transactions through NETC FASTag for automatic toll collection at toll plazas are 19.32 crore worth Rs 3,086.32 crore.
PhonePe, which first achieved market leadership on UPI in December of last year, has seen its transaction count steadily rise. PhonePe handled 975.53 million UPI transactions in February 2021, up from 902.03 million in December 2020.It's growth in digital payments is being fueled by its emphasis on increasing merchant acceptance in the region.
Paytm Payments Bank's total UPI numbers have increased from 244.94 million in October 2020 to 340.71 million in February 2021. However, banking outages have hampered the growth of Google Pay, which was once the industry leader.
Commanding close to 43% market share in UPI payments Google Pay had registered 857.8 million transactions in October and reached a record of 960 million transactions in November.
The 30% market share limit on UPI transactions for third-party app providers such as Google Pay and PhonePe was established by NPCI as part of its standard operating procedure.
When the percentage of new users reaches 30%, apps and their partner banks will be forced to stop signing up new users immediately.NPCI, on the other hand, indicated that it could grant exemptions if justifications are given.
Transactions on the Immediate Payment Service rose to 363.14 million in March, up from close to 318.79 million in February. In March 2021, FASTag transactions increased to 193.21 million from 158.96 million in February 2021.