The pandemic has accelerated the adoption of digital payments in India, especially retail digital payments. In the past year, retail digital payments have seen huge growth as more people gravitated towards digital modes of transaction owing to fear of contracting the virus and convenience. Data from the Reserve Bank of India (RBI) suggests, a slowdown in wholesale transaction value, but volume growth withstood the pandemic. Transactions through National Electronic Funds Transfer (NEFT), National Electronic Toll Collection (NETC), and the Bharat Bill Payment System (BBPS) registered acceleration over the previous year. Other retail payment platforms such as Unified Payments Interface (UPI), Immediate Payment Service (IMPS), and National Automated Clearing House (NACH) saw a near doubling of both transaction volume from 12.5 billion to 22.3 billion, and value from Rs 21.3 trillion to Rs 41 trillion between FY2020 and 2021.
3 hours ago
“There is a market distortion” in the digital payments industry today between incentives for earning revenues and growth, according to Sameer Nigam, chief executive officer, PhonePe. While the National Payments Corporation of India (NPCI) recently issued guidelines for its market share caps on the Unified Payments Interface, Nigam believes that without a merchant-discount-rate future investments in the sector could be threatened.
Nigam was speaking during discussion organised by Moneycontrol on the Future of Digital Payments in India on Clubhouse, the audio-only meeting app. Other participants in the discussion included Dilip Asbe, CEO, NPCI; Harshil Mathur, CEO, Razorpay; and Vikram Vaidyanathan, managing director, Matrix Partners India.
ICICI Bank, PhonePe tie up for issuance of FASTags
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Last Updated: Apr 01, 2021, 03:40 PM IST
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Synopsis
This integration allows over 28 crore registered PhonePe users to order and track the ICICI Bank FASTag conveniently on the app, ICICI Bank said in a release. Those PhonePe users who are also ICICI Bank customers do not need to visit physical stores or toll collection locations to buy a FASTag.
Those PhonePe users who are also ICICI Bank customers do not need to visit physical stores or toll collection locations to buy a FASTag.
ICICI Bank and digital payment wallet PhonePe have partnered for issuance of FASTag, which facilitates electronic payment of fee at toll plazas.
March 8, 2021
Some of India’s leading startups, fintechs, large banks and corporates, alongside a few global financial giants and tech companies, have come together, all to grab a piece of India’s burgeoning payments market. Soon, the Reserve Bank of India (RBI) may grant some of them their wish to build and scale new ways for Indian consumers to transact.
While cash remains the dominant form of making transactions in the country, over the last few years the number of consumers and merchants transacting digitally has grown exponentially. This has to do with two factors one the falling cost of data and access to smartphones which enable digital transactions and the second, the increased access to financial services like bank accounts and credit. According to Credit Suisse, digital payments in India now clock an annual payment run-rate of $450 billion and constitute 30% of all retail transactions from 10% in 2018.