According to the latest report published by the ministry of electronics and information technology (MeitY), Paytm Payments Bank Ltd (PPBL) has emerged as the bank that handled the UPI-based payments best in January 2020 with the lowest technical decline rate of 0.02%.
The technical decline rate is the ratio of failed transactions as compared to the overall transactions handled by the bank. It is worth noting that the rate for Paytm Payments Bank was even lower than the likes of Axis Bank, HDFC Bank, State Bank of India, among other full-service banks. While Axis Bank had a 0.18% technical decline rate, 0.56% and 1.52% of all the UPI-based transactions of HDFC and SBI failed in January 2020 due to technical issues. UCO Bank and Allahabad Bank, which had a technical decline rate of over 4%, performed the worst among all other banks.
Caught in a storm, YES Bank, which handled the most number of transactions in January, had a technical decline rate of 0.07%.
In January 2020, Paytm Payments Bank had processed over 169 Mn UPI transactions and was only behind YES Bank in terms of the total number of UPI transactions. While most of the other banks facilitate UPI transactions on other platforms, Paytm Payments Bank only processes UPI transactions on the Paytm app.
However, with the recent outage of YES Bank and ICICI Bank partnering with PhonePe and BharatPe, Paytm Payments Bank will now face major competition from ICICI Bank. Paytm Payments Bank claims to have registered 100 Mn UPI handles on its platform. Besides 100 Mn UPI handles, Paytm Payments Bank also has 55 Mn bank accounts on the platform. It also claims that it is the only profitable payments bank in India.
Paytm Payments Bank Misses January Target
In January 2020, UPI had recorded 1.31 Bn transactions. The number was quite similar to the previous month as most of the banks driving UPI transactions had missed their monthly target in January 2020.
While most of the major UPI facilitating banks had achieved their monthly targets, Paytm Payments Bank had failed to achieve the feat. Notably, Paytm Payments Bank had achieved 84.27% of its target. Major UPI facilitating banks such as YES Bank, ICICI Bank, Axis Bank, SBI Bank also had overachieved their target in January 2020.
Among the payments bank, only FINO Payments Bank was able to achieve the target for the month. While Jio Payments Bank had achieved 67.7% of its target, Indian Post Payments Bank was only able to achieve 4% of the January target.