Digital Payment Volumes on NPCI Channels Rebound in May
Transaction volumes recorded on channels such as Unified Payments Interface (UPI), Immediate Payment System (IMPS), Bharat Bill Payment System and National Electronic Toll Collection (NETC) inched towards pre-covid levels signifying a slow revival in commercial activities and early signs of consumer appetite to spend.
(Economic Times, June 1)
Parv Sharma's key takeaways:
- Looking more closely at the numbers, May’s rebound is encouraging, at least for digital payments.
- Clearly one of the major drivers is no one wants to be touching cash, which has become “the new Typhoid Mary”.
- But a lot of hurdles still remain. For example:
- Cultural resistance – many people still don’t trust or understand digital.
- Retailers still prefer cash, whether for tax reasons or otherwise.
- Illiteracy is high (26% vs 3% in China, for example) and this correlates to smartphone usage. It could also disproportionately impact take-up outside metros.
- Nevertheless, ecosystem players are in place, the opportunity is huge, and, importantly, the country’s open digital payments infrastructure is robust, fair and enjoys low barriers to entry.
Existing Subscriber?
Sign in to continue reading
go to Login
New to Counterpoint?
Register to our service
go to Register
Category
Report Type
Report
Summary
Category
Published
Jun 2, 2020
Contact us
© 2025 Counterpoint Technology Market Research