Transactions carried out using the Unified Payments Interface (UPI) channel have shown a substantial month-on-month increase since it was launched back in November. While the push appears to have heated things up in a short time frame (for what was a cold start) the substantial jump in payments has now lead to a plateauing as revealed by the latest RBI report.
According to the latest Reserve Bank of India (RBI) report, the figures have shown a month-on-month increase of 137 percent from November to December and a massive jump of 677 percent, thanks to demonetisation and push for digital payments from December to January. But as The Financial Express points out, even though the transactions have held up, there has barely been any growth from January to February.
According to the report, the UPI clocked in 3.8 million transactions that hauled in Rs 1,730 crore during February, but this only accounts to a 3.6 percent rise in terms of growth from the previous month. The average transaction too barely went up from Rs 4,517 in January to Rs 4,553 in February.
The jump in the January could have had the Bhim app for support which was launched for Android smartphones on 30 December. With over 14 million registrations, it was good but not good enough.
Bloomberg points out that the problems of staggered growth come from the merchant's end.
As per AP Hota, CEO of National Payments Corporation of India (NPCI), a majority of the transactions comes courtesy of the Bhim app, that about 35 lakh people use regularly.
The problem is that merchants are not hooked on and are better off with services like Paytm because they simply offer more benefits. In short, it's government that is not giving enough leeway but comes with plenty of expectations.