The updated version of Unified Payments Interface, known as UPI 2.0, was launched in August this year with an aim to expand UPI’s presence, especially in person-to-merchant payment space. This update has been widely acknowledged, according to a recent analysis by Paytm.
Paytm-parent One97 Communications has announced that over five million offline merchants out of its merchant-base of nine million now accept UPI. According to the company, 40% of all UPI based transactions on Paytm are driven by offline merchants.
Here’s a quick update on what else Paytm recorded:
- Merchants across Bengaluru and Hyderabad are leading the acceptance of Paytm UPI payments followed by Delhi, Pune and Mumbai respectively
- Organised electronics retail, fashion and departmental stores are witnessing more traction as users are finding it easier to pay larger amounts using its BHIM UPI
- More number of users are linking their multiple bank accounts with its BHIM UPI to conveniently pay from any of their accounts for large or frequent payments
To be noted, Paytm integrated BHIM UPI to its payment app in November 2017. Paytm BHIM UPI IDs are being accepted across all banks and BHIM UPI apps.
Deepak Abbot, Sr. Vice President – Paytm said, “We are excited to lead the Paytm BHIM UPI adoption at the offline stores ranging from local street vendors to organised, large format retail stores. It is a big milestone for us where 40% of all UPI transactions on Paytm are now merchant transactions. We will continue investing in our efforts to drive the adoption of UPI and take it to the grassroots of India by educating and introducing more consumers and merchants to the convenience of payments directly from their bank account.”
Driving Next Gen Of Payments: UPI
According to July 2016 Google-BCG report, the digital expenditure is expected to grow to $100 Bn, that is, nearly 2.5 times more by 2020.
The digital payments growth in the country has been largely attributed to the availability of UPI 24*7 along with the ease of access, being adopted by various digital payments players including Paytm, Flipkart’s PhonePe, Google Tez, WhatsApp Pay and Amazon Pay amongst others.
Recently reports surfaced that BHIM app, which aids in cashless transactions using a mobile phone, is working on a revised cashback scheme targeted towards the merchants. With the revised scheme, the ministry will focus more on providing incentives to the merchants.
UPI recorded a 4% decline in the number of transactions from 246 Mn in June to 235.6 Mn in July 2018. However, it overcame the gap in August recording 312 Mn transactions.
Prime Minister Narendra Modi has also advised the central and state departments to set and achieve targets to boost the number of transactions made using BHIM app.