May digital payments see an uptick, indicating revival in economic activity

As vehicular activity returned in May, toll collection saw a huge uptick; Fastag posted an impressive jump of more than 400 per cent in transaction count at 55.17 million

In the case of UPI, transaction value at Rs 2.18 trillion was even more than in the month of March at Rs 2.06 trillion.

2 min read Last Updated : Jun 02 2020 | 1:14 AM IST

Digital payments saw a revival in May, after the government granted some relaxation during the third and fourth phases of the lockdown, leading to a pick-up in economic activity.

April had witnessed a blip in digital payments, following the stringent lockdown.

Data by the National Payments Corporation of India (NPCI) showed the transaction volume and value, on platforms such as United Payment Interface (UPI), Immediate Payment Service (IMPS), National Electronic Toll Collection (NETCC) and Bharat Bill Payment System (BBPS), posting significant growth in May.

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Transaction value for UPI, at Rs 2.18 trillion, surpassed that for March at Rs 2.06 trillion, with the volume coming in a little short at 1.23 billion versus 1.25 billion. April had seen the transaction count on UPI plummet to 0.99 billion and value to Rs 1.51 trillion. Thus, May saw a jump of 45 per cent in value and 24 per cent growth in transaction count.

For IMPS, the transaction count jumped 36 per cent to 166.8 million in May, from 122.47 million in April, while the value grew 39 per cent to Rs 1.69 trillion against Rs 1.22 trillion in April. For March, the volume stood at 216.82 million with value at 2.01 trillion.

The transaction limit under IMPS and UPI is capped at Rs 2 lakh per transaction.

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BBPS, an online bill payment system, also saw a revival with transaction count growing 30 per cent to 16.54 million in May, from 12.77 million in April. The transaction value grew about 60 per cent to Rs 2,179 crore in May, compared to Rs 1,371 crore in April. Notably, the transaction count and value in May for BBPS was more than the numbers clocked in March, which saw a clampdown in economic activity for almost 10 days.

With vehicular activity picking pace in May, toll collection also saw a huge uptick. Fastags posted an impressive jump of more above 400 per cent in transaction count at 55.17 million, and an over-300 per cent jump in value at Rs 1,142 crore.