A lot has been happening in the Indian digital payments space. With the entry of big players like Google, Amazon and now PayPal and the government’s drive towards cashless economy, digital transactions in the country reached an all-time high of 965 Mn last month, as per RBI data.
This is the highest volume of digital transactions that the country has seen since the commencement of demonetisation on November 8, 2016. Following closely behind is the record of 957.5 Mn, which was clocked in December last year.
According to the available data, October 2017 saw a 10% increase in digital transactions from 877 Mn earlier in September. The total value of these transactions, however, dropped by 8% from $1.9 Tn (INR 124.7 Tn) in September to $1.7 Tn (INR 114.5) Tn last month.
Digital transactions include all payments made by credit and debit cards, UPI, prepaid payment instruments (PPIs), Internet banking and unstructured supplementary service data (USSD).
Some industry experts have credited the increase in digital transactions to the festive season that extended from the third week of September till of October. During Diwali, digital payments platforms saw a surge in activities especially from tier II and tier III cities.
Others have attributed it to increased awareness of the advantages of digital payments solutions, such as BHIM, UPI and Bharat QR.