Online transaction and payment market of India witnessed a huge growth

Posted on: Jul-2018 | Electrical & Electronic

Aadhaar Enabled Payments Systems (AEPS), supported by the Indian Government to boost digital transactions in rural part of the country, is displaying ultimate signs of acceptance among its aimed audience. This was concluded with rising transaction that grew over 6-fold within 5 months of time frame since the currency swap.

"Banks have previously organized almost 1.3 Lakh of micro ATMs in the nation, of which over 1 Lakh ATMs are interoperable," claimed National Payments Corporation of India’s (NPCI) Chief Executive Officer, A P Hota. "Payments based on Aadhaar are the correct technology for rural parts of India where knowledge about safety features for digital transactions such as password and OTP is absent."

Reflecting the Unified Payments Interface’s (UPI) achievement, AEPS payments reached over 6 Million in April 2017 as compared to less than 1 Million in October 2016, as per NPCI data. From almost 2 Million in December 2016, the figure of payments has progressively elevated to 6.1 Million in April 2017. AEPS payments are boosted by micro ATMs being organized mainly by banks in rural part of India, where payments based on smartphone cannot work. As a result, the online transaction and payment market of India also witnessed a huge growth.

Interoperable micro ATMs permit users to utilize any bank account to make a payment on any device, similar to ATMs, where ATM cards of any bank can be employed on any machine. Hota claimed that the achievement of the AEPS program lies in the capability of deploying such solutions for their users by the regional rural banks. "We already have 53 regional rural banks providing interoperable AEPS solutions out of the entire 56, and our aim is to turn all of them into interoperable immediately," claimed Hota.

While providing options around digital transactions, micro ATMs also permit banks to transport banking to rural parts of India in an affordable manner, thus driving economic inclusion. While AEPS works around, almost 70% of the payments are still for “only cash” deposits or withdrawal and the remaining for fund transfer and balance enquiry.

For now, the online transaction and payment market of India is boosted by the current situation of growing digitalization.