According to recent data released by the Reserve Bank of India (RBI), digital transactions in the country have reportedly crossed the 1 billion mark this December after recording nearly 1.06 billion transactions. There was a hike of about 6.5 percent in comparison to November which had 998 million total digital transactions up to that point.
Prime Minister Narendra Modi’s demonestisation decision in November 2016 and widespread use of UPI (Unified Payment Interface) and other e-wallet services are strong driving factors of this jump in digital transactions in the past year or so.
The RBI data shows that UPI alone has raised transactions by up to 40 percent month-on-month after it saw nearly 145.5 million transactions in December as compared to 104.8 million done in November.
While smartphone-based transactions showed strong growth, traditional card payments also grew at a respectable 8% month-on-month. Debit and credit card payments clocked 264 million transactions in December against 244.6 million in the previous month.
A closer look at the numbers reveals that UPI has shown the strongest growth in terms of volume through 2017 albeit a low starting point. The payment mode which got a huge boost post demonetisation has been riding a spectacular growth wave assisted by entities like Paytm and Google Tez joining the bandwagon along with players like PhonePe and government promoted BHIM (Bharat Interface for Money).