India’s-payment-system-indicators-in-Q2-2020

Views:
 
Category: Entertainment
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

slide 1:

India’s payment system indicators in Q2 2020 02 nd August 2020 Analysis of

slide 2:

2 All rights reserved. This document is proprietary and confidential. Report outline Section 1 Executive summary • Summary of analysis: Quarter-wise • Summary of analysis: Category-wise Section 2 Detailed analysis • Cash Currency with the public • Contactless payments: Unified Payments Interface UPI • Contactless payments: Bharat Bill Payment System BBPS • Contactless payments: BHIM Aadhaar Pay BAP • Aadhaar-Enabled Payment System AePS • Card-based payments and transactions • Transfers and high-value payments Section 3 Annexes • NPCI’s key payments systems and channels • Status of India’s payments infrastructure • Additional payment system indicators

slide 3:

3 All rights reserved. This document is proprietary and confidential. ABPS Aadhaar Payment Bridge System AePS Aadhaar-Enabled Payment System AePS ON-US Intra-bank AePS transaction AePS OFF-US Inter-bank AePS transaction ATM Automated Teller Machine BBPS Bharat Bill Payment System BC Business Correspondent Agent BHIM Bharat Interface for Money BAP BHIM Aadhaar Pay IMPS Immediate Payment Service INR Indian Rupee NEFT National Electronic Funds Transfer RTGS Real-time Gross Settlement UIDAI Unique Identification Authority of India UPI Unified Payments Interface Abbreviations and acronyms

slide 4:

Executive summary

slide 5:

5 All rights reserved. This document is proprietary and confidential. India imposed a nationwide lockdown in the last week of March 2020. This led to severe curbs in consumer spending due to restricted mobility shutdown of shops and e-commerce operations travel bans and reduced discretionary spending on non-essential items. Consequently digital payments which were on a rise till Q1 2020 witnessed a significant contraction in volume and value in Q2 2020. Currency with the public witnessed a historic average fortnightly rise of around INR 355.2 billion USD 4.71 billion in Q2 2020 as people started accumulating cash ahead of the lockdown and during it. The demand for cash as a “safe asset” continues to rise particularly among low- and moderate-income communities as they prepare to weather the difficult days ahead. AePS emerged as a critical cash-out medium for migrants daily wagers and workers from other informal sectors who suffered severe setbacks to their livelihoods due to the ongoing COVID-19 pandemic. AePS transactions driven by cash transfer programs of governments grew considerably during the lockdown and the subsequent unlock phases in Q2 2020. Contactless payments such as UPI BBPS and BAP have made a near v-shaped recovery in Q2 2020 and are back to pre-COVID-19 levels with the relaxation in lockdown restrictions announced in May 2020. UPI outstripped all other payment channels and systems with volumes at an all-time high of 1.34 billion in June 2020. As consumer spending shifted the purchase of daily essentials and groceries through both online and offline card transactions witnessed a record decline. Card payments are looking at a strong recovery backed by the improvement in consumer spending in consumption base categories. While transfers and high-value payments witnessed a sharp contraction both in volume and value APBS remained an exception owing to the emergency cash support transfers and other government programs. Executive summary: Quarter-wise analysis The COVID-19 pandemic has acted as a second wave of behavioral shift that will push many users to adopt digital payments due to its convenience and adherence to safety precautions 103.45 -7.91 3.02 22.03 -62.16 -67.55 -31.92 -32.19 -22.68 -32.60 16.39 Movement in volume In Q2 2020 over Q1 2020 AePS UPI BBPS BAP Debit Card Credit Card Rupay RTGS NEFT IMPS 60.81 -2.15 10.90 -12.55 -66.49 -70.45 -29.55 -28.40 -22.83 -21.45 71.50 Movement in value in Q2 2020 over Q1 2020 AePS UPI BBPS BAP Debit Card Credit Card Rupay RTGS NEFT IMPS Key trends and insights Q2 2020 transaction data for BAP debit card and credit card comprises April and May 2020 as RBI is expected to release the transaction data for June 2020 in August 2020 We have used a three-month average Apr ’20-Jun ’20 of the USD to INR exchange rate of 75.29 for all conversions in this report

slide 6:

6 All rights reserved. This document is proprietary and confidential. Executive summary: Category-wise analysis 1/2 Payment system indicators Where are we at the end of Q2 2020 Outlook for Q3 2020 Currency with the public • As people started accumulating cash ahead of the lockdown phase the currency with the public witnessed an average fortnightly rise of almost INR 355.2 billion USD 4.71 billion while demand deposits with banks saw an average fortnightly decline of around INR 274.56 billion USD 3.64 billion. • Withdrawals at ATMs and Micro ATMs to support the currency demand seems to have now stabilized as people continue to hoard cash as a “safe-asset.” • With the partial lockdowns still in effect people’s reliance on cash is expected to rise further in the next one to two months. Contactless payments • With relaxations in lockdown restrictions coming into play in May and June 2020 UPI transactions have bounced back to pre-COVID-19 levels. The payments in June 2020 hit an all-time high of 1.34 billion in volume and INR 2618.35 billion USD 34.73 billion in value—a month-on-month m-o-m increase of 8 in volume and 20 in value. • BBPS transactions made a strong recovery in May 2020 and June 2020 backed by relaxations in the lockdown restrictions. The payments in June 2020 hit an all-time high of 17.64 million in volume and INR 29.70 billion USD 0.39 billion in value—an m-o-m increase of 7 in volume and 36 in value. • BAP transactions hit an all-time high of 2.07 million in volume and INR 2.17 billion USD 0.03 billion in value in April 2020 as merchants in rural locations pushed customers to transact through BAP . Though this number dropped again in May 2020 it is still substantially higher—around 40 more than average in Q1 2020. • The integration of UPI in Jio’s basic phones is likely to spur the growth of UPI transactions for its 388 million users in tier 2 3 and 4 cities in India. • Partnerships with institutions such as MFIs and NBFCs can help BBPS digitize the recurring payments of the 600 million customers in the low- and moderate-income segments. Aadhaar Enabled Payment System AePS • AePS transactions driven by Micro ATM transactions at BC agents and retailers grew considerably during the lockdown and the subsequent unlock phases in Q2 2020. This was mostly due to cash transfer programs of the government to support vulnerable citizens during the COVID-19 pandemic. Consequently this created a massive demand for withdrawal. • NPCI processed 1.21 billion transactions through AePS in Q2 2020—the highest so far. Of this 0.29 billion were financial transactions worth INR 528.21 billion USD 7.01 billion—an increase of almost 151 in volume and 61 in value for financial transactions over Q1 2020. • AePS has provided a fillip to in-cash DBT through agent network across rural India. However delivery issues at the ground level restrict its uptake among the 400 million ultra-poor. This number is likely to increase with introduction of more cash based subsidies

slide 7:

7 All rights reserved. This document is proprietary and confidential. Executive summary: Category-wise analysis 2/2 Payment system indicators Where are we at the end of Q2 2020 Outlook for Q3 2020 Card-based payments and transactions • Overall both debit and credit card payments witnessed a sharp m-o-m decline. The volume of card payments declined by 47 while the value dropped by 57 in April 2020. The average ticket size also fell by almost 21 for debit cards and 12 for credit cards in April. • RuPay transactions also bore the brunt of the pandemic. NPCI processed 264.61 million RuPay transactions worth INR 326.69 billion USD 4.33 billion in Q2 2020 which indicates a decline of almost 32 in volume and 30 in value over Q1 2020. • As relaxations in lockdown restrictions came into effect in May card payments made a strong recovery backed by the revival of commercial activities and improvement in consumer spending in consumption base categories. • Concerns over the transmission of the virus through the exchange of physical currency are likely to boost online card transactions as commercial activities pick up with the relaxation in restrictions. Remittances and money transfers • The nationwide lockdown resulted in a sharp contraction in the volume and value of remittances and money transfers in Q2 2020 over the previous quarter. RTGS transactions witnessed a decline of almost 32 in volume and 28 in value while NEFT transactions declined by 23 in both volume and value. • Transactions through IMPS commonly used for low-ticket sized remittances declined by 33 in volume and 21 in value in Q2 2020 over the previous quarter. • APBS was an exception as it was used by the government to transfer funds or subsidies under various heads directly into the Aadhaar-enabled accounts of beneficiaries. NPCI processed 483.08 million transactions worth INR 449.34 billion USD 5.96 billion through APBS. • Backed by the revival in economic and commercial activities across the board RTGS NEFT and IMPS transactions are on the path to a v- shaped recovery.

slide 8:

A detailed analysis of select payment system indicators

slide 9:

9 All rights reserved. This document is proprietary and confidential. Since March 2020 currency with the public witnessed an average fortnightly rise of approximately INR 355.2 billion USD 4.71 billion as people started accumulating cash ahead of and during the lockdown. The rise in cash with the public indicates a greater usage of cash for transactional purposes. Cash withdrawals at ATMs have come down. Typically urban users have more access to ATMs and are also more comfortable in conducting digital transactions. Cash withdrawals at micro ATMs supported by AePS witnessed a sharp rise of around 153 in volume and 61 in value in Q1 2020 over the previous quarter. This was due to the cash transfer programs of the governments to support vulnerable citizens during the COVID-19 pandemic. Since March 2020 demand deposits with banks witnessed an average fortnightly decline of around INR 274.56 billion USD 3.64 billion while time deposits witnessed an average fortnightly increase of almost INR 777.85 billion USD 10.32 billion. The largest contribution of demand deposits worth approximately INR 2849 billion USD 37.8 billion was received in the first two weeks of April 2020. This can be attributed to the announcement of the lockdown and in part to the credit risk in the debt market and volatile equity market. Cash currency with the public Despite the lockdowns the demand for cash as a “safe asset” continues to rise particularly among low- and moderate-income communities as they prepare to weather difficult days ahead Cash and digital payments continued to co-exist and grow during the lockdown and the subsequent unlock phases in Q2 2020. A fresh rise in the number of infections and extension in partial lockdowns is expected increase people’s reliance on cash in the next one to two months.` Key trends and insights 22189.27 22557.71 23497.15 24248.23 25128.50 25629.67 31-Jan-20 28-Feb-20 31-Mar-20 24-Apr-20 22-May-20 19-Jun-20 Currency with the public INR billion 657 622 547 296 409 381 367 321 181 255 290 2985 2865 2511 1299 1973 1420 1393 1243 684 1026 1187 - 500 1000 1500 2000 2500 3000 3500 - 100 200 300 400 500 600 700 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Cash withdrawal at ATMs Total withdrawals at ATMs Mn Interbank withdrawals at ATMs Mn Value of withdrawals at ATMs INR Bn Value of interbank withdrawals at ATMs INR Bn Date Variation in currency with the public INR Bn Variation in demand deposits INR Bn Variation in time deposits INR Bn 10 Apr 20 415.83 1357.45 2849.38 24 Apr 20 335.24 120.77 85.77 08 May 20 492.08 100.23 1503.99 22 May 20 388.19 127.81 77.90 05 Jun 20 315.56 307.74 949.13 19 Jun 20 185.61 248.83 643.28

slide 10:

10 All rights reserved. This document is proprietary and confidential. Set-up as a comparatively open and interoperable payment platform UPI has grown by 270 in volume and 341 in value from March 2018 till March 2020. NPCI processed 3.57 billion payments worth INR 631367 billion USD 83.75 billion through UPI in Q2 2020. This amounts to a decline of around 8 in volume and 2 in value over Q1 2020. The drop in transactions in the last week of March and throughout April 2020 may be attributed to the nationwide lockdown that severely curbed consumer spending due to restricted mobility shut down shops and e-commerce operations imposed travel bans and reduced discretionary spending on non-essential items. The relaxations in lockdown restrictions came into play in May and June 2020. Since then UPI transactions have bounced back to pre-COVID-19 levels. Payments in June hit an all-time high of 1.34 billion in volume and INR 2618.35 billion USD 34.73 billion in value—m-o-m increase of 8 in volume and 20 in value. Google Pay PhonePe and Paytm continue to lead UPI adoption and usage for P2P and P2M payments during restricted mobility and social distancing. The volumes of P2P transactions were the highest on Google Pay followed by PhonePe and Paytm while the volume of P2M transactions was the highest on PhonePe. Contactless payments: Unified Payments Interface UPI UPI transactions made a near v-shaped recovery in Q2 2020 and bounced back to pre-COVID-19 levels as several states in India eased the lockdown restrictions Key trends and insights 1657.01 1678.50 1655.88 1512.05 1769.07 1958.48 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Average value per transaction INR Growth in UPI’s unique users 100 million 150 million Jan 2020 Jun 2020 1.31 1.33 1.25 1.00 1.23 1.34 2.16 2.23 2.06 1.51 2.18 2.62 - 0.50 1.00 1.50 2.00 2.50 3.00 - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 UPI transactions Total UPI transactions Bn Value of UPI transactions INR 000 Bn Contactless payments such as UPI have become a necessity in these times. The integration of UPI in Jio’s basic phones is likely to spur the growth of UPI transactions for its 388 million users across tier 2 3 and 4 cities in India

slide 11:

11 All rights reserved. This document is proprietary and confidential. Owing to the convenience it offers of round-the-clock bill payments to multiple billers from a single platform BBPS saw a 271 increase in volume and 344 in volume from March 2018 to March 2020. By integrating recurring payments apart from five utility payments mandated by the RBI BBPS has added 85 unique billers across 15 additional categories since January 2020. These payments include education fees loan repayments insurance booking of cooking gas municipality taxes subscription fees etc. Consequently NPCI processed 46.95 million payments worth INR 65.20 billion USD 0.86 billion through BBPS in Q2 2020—an increase of almost 3 in volume and 11 in value over Q1 2020. After a drop in April BBPS transactions made a strong recovery in May and June 2020 backed by relaxations in the lockdown restrictions. The payments in June hit an all-time high of 17.64 million in volume and INR 29.70 billion USD 0.39 billion in value—an m-o-m increase of 7 in volume and 36 in value. The revival of commercial activities improvement in consumer spending in consumption base categories and the addition of new biller categories have added to this recovery. Contactless payments: Bharat Bill Payment System BBPS BBPS transactions made a strong recovery in Q2 2020 backed by the ongoing consolidation of the recurring bill payments industry under one payment system Key trends and insights Growth in live billers for BBPS 170 245 Jan2020 Jun 2020 1329.00 1311.68 1233.01 1073.94 1317.24 1683.12 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Average value per transaction INR Bill segments include: Direct-to-home DTH electricity gas telecom and water 14.80 14.92 15.85 12.77 16.54 17.64 19.67 19.57 19.54 13.71 21.79 29.70 - 5.00 10.00 15.00 20.00 25.00 30.00 35.00 - 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 BBPS transactions Total BBPS transactions Mn Value of BBPS transactions INR Bn Partnerships with institutions such as MFIs and NBFCs can help BBPS digitize the recurring payments of the 600 million customers in the low- and moderate-income segments spread across Indias rural and semi- urban areas.

slide 12:

12 All rights reserved. This document is proprietary and confidential. NPCI processed 3.41 million payments worth INR 3.76 billion through BAP in the first two months of Q2 2020. The trend suggests that the volume and values in Q2 2020 would be substantially higher as compared to the previous quarter. A drop in transactions in the last week of March 2020—an m-o-m decrease of 8 in volume and 5 in value—may be attributed to the restricted mobility and closed merchant outlets due to the nationwide lockdown. Backed by the cash transfer programs of governments to support the vulnerable during the pandemic BAP transactions hit an all-time high of 2.07 million in volume and INR 2.17 billion USD 0.03 billion in value in April 2020. This was due to the push from merchants in rural locations for customers to use BAP . While cash-backs and incentives continue to create a positive impact and pull for both customers and merchants push from the acquiring banks has been one of the major drivers in the adoption of BAP . As relaxations in lockdown restrictions came into effect in May 2020 BAP transactions also saw a decrease during the month. However the transactions are still substantially higher 40 more than the average in Q1 2020. Contactless payments: BHIM Aadhaar Pay BAP BHIM Aadhaar Pay BAP can revolutionize merchant payments in rural India targeting specific market segments. However concerns around product fit and awareness inhibit the merchants from using BAP. Key trends and insights RBI will release the BAP’s transaction data for June 2020 in August 2020 1506.52 1536.44 1586.82 1050.79 1189.35 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Average value per transaction INR 100 22 The share of BAP POS devices Total POS devices BAP POS devices 0.94 0.97 0.89 2.07 1.34 1.41 1.49 1.41 2.17 1.59 - 0.50 1.00 1.50 2.00 2.50 - 0.50 1.00 1.50 2.00 2.50 Jan-20 Feb-20 Mar-20 Apr-20 May-20 BHIM Aadhaar Pay BAP transactions Total BAP transactions Mn Value of BAP transactions INR Bn A lukewarm push from banks latent awareness and demand among the customers lengthy transaction process non-compatibility of biometric scanners and issues around data privacy and protection continue to slow the progress of BAP .

slide 13:

13 All rights reserved. This document is proprietary and confidential. AePS is popular in rural geographies for CICO and domestic remittances especially for those who lack financial literacy or hardware such as smartphones. It has grown by 82 in volume and 271 in value from March 2017 to March 2020. AePS transactions driven by Micro ATM transactions at BC agents and retailers grew considerably during the lockdown and the subsequent unlock phases in Q2 2020. This was due to cash transfer programs of the governments to support the vulnerable during the pandemic which created a massive demand for withdrawal. NPCI processed 1.21 billion transactions through AePS in Q2 2020 of which 0.29 billion were financial transactions worth INR 528.21 billion USD 7.01 billion. This amounts to an increase of almost 151 in volume and 61 in value for financial transactions over Q1 2020. Non-financial transactions such as balance inquiry mini statement and UIDAI authentication also witnessed a similar surge. However reports indicate a spike in the failure rates of AePS transactions. The average failure rate was 39 in April 2020 across four financial institutions that operate in India. Aadhaar Enabled Payment System AePS AePS has emerged as a critical cash-out medium for migrants daily wagers and other workers in the informal sector who suffered severe setbacks to their livelihoods due to the ongoing COVID-19 pandemic Key trends and insights 214 206 173 403 405 397 141 136 111 212 185 183 73 70 62 191 220 215 113 114 102 147 181 200 - 50 100 150 200 250 - 50 100 150 200 250 300 350 400 450 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Break-up of AePS transactions: ON-US and OFF-US Total approved transactions Mn ON-US transactions Mn OFF-US transactions Mn Total value of transactions INR Bn 41 40 35 90 101 101 32 30 26 102 119 114 141 136 111 212 185 183 - 50 100 150 200 250 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Break-up of AePS transactions: Financial and non-financial Financial transactions Mn Non-financial inter-bank transactions Mn Non-financial intra-bank transactions Mn AePS has provided a fillip to in-cash DBT through agent network across rural India. However delivery issues at the ground level restrict its uptake among the 400 million ultra-poor. These issues may include recurring transaction failures especially for OFF-US transactions issues in the reconciliation of failed transactions etc. This number is likely to increase with introduction of more cash based subsidies

slide 14:

14 All rights reserved. This document is proprietary and confidential. Restricted mobility the shutdown of shops and non-essential e-commerce operations travel bans and reduced discretionary spending adversely affected online and offline card payments made through debit and credit cards. The overall card payments witnessed a sharp m-o-m decline of 47 in volume and 57 in value during April 2020. As consumer spending shifted from discretionary purchases to the purchase of daily essentials and groceries the average ticket size also declined by around 21 for debit cards and 12 for credit cards in April 2020. As relaxations in lockdown restrictions came into effect in May 2020 card payments made a strong recovery backed by the revival of commercial activities and improvement in consumer spending in consumption base categories. RuPay transactions also bore the brunt of the pandemic. NPCI processed 264.61 million RuPay transactions worth INR 326.69 billion USD 4.33 billion in Q2 2020—a decline of around 32 in volume and 30 in value over Q1 2020. Much of the recovery in RuPay transactions may be attributed to the emergency cash transfers from governments to support vulnerable citizens during the COVID- 19 pandemic. Card-based payments and transactions Card payments are on the path to strong recovery after the pandemic dealt a blow to both online and offline transactions in April 2020 Key trends and insights 464 438 372 210 272 259 246 193 68 112 846 801 653 290 480 389 363 272 90 188 - 100 200 300 400 500 600 700 800 900 - 100 200 300 400 500 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Debit card transactions Total debit card transactions Mn Debit card transactions POS Mn Value of debit card transactions INR Bn Value of debit card transactions POS INR Bn RBI will release the Debit Card and Credit Card transaction data for June 2020 in August 2020 140 132 117 73 91 101 80 74 60 22 37 49 167 159 137 71 114 142 111 103 82 29 59 81 - 20 40 60 80 100 120 140 160 180 - 20 40 60 80 100 120 140 160 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 RuPay transactions Total RuPay transactions Mn RuPay transactions POS Mn Value of RuPay transactions INR Bn Value of RuPay transactions POS INR Bn Concerns over the transmission of the virus through the exchange of physical currency will likely boost online card transactions as commercial activities pick up with the relaxation in restrictions.

slide 15:

15 All rights reserved. This document is proprietary and confidential. Together RTGS and NEFT account for a little over 90 of total payments in the country. The nationwide lockdown led to a sharp contraction of volume and value of these transactions in Q2 2020 over the previous quarter. RTGS transactions witnessed a decline of almost 32 in volume and 28 in value while NEFT transactions declined by 23 in both volume and value. Domestic money transfer services took a severe hit as migrants moved back to their native places in rural areas after non-essential economic activities shut down in urban and semi-urban areas. These activities included building and road construction works among others. Subsequently transactions through IMPS commonly used for low-ticket sized remittances declined by 33 in volume and 21 in value in Q2 2020 over the previous quarter. APBS was an exception as it was used by the government to transfer funds and subsidies under various heads directly into the Aadhaar-enabled accounts of beneficiaries. NPCI processed 483.08 million transactions worth INR 449.34 billion USD 5.96 billion through APBS—an increase of almost 16 in volume and 71 in value over Q1 2020. Transfers and high-value payments While transfers and high-value payments witnessed a sharp contraction in both volume and value APBS remained an exception owing to emergency cash support transfers and other government programs Key trends and insights 13.73 13.32 11.89 5.43 9.00 11.97 98.81 89.90 120.47 64.44 70.42 86.52 - 50.00 100.00 150.00 - 5.00 10.00 15.00 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 RTGS transactions Total RTGS transactions Mn Value of RTGS transactions INR 000 Bn 261 248 262 176 193 227 19.29 18.70 22.84 13.06 14.82 19.07 - 5.00 10.00 15.00 20.00 25.00 - 50 100 150 200 250 300 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 NEFT transactions Total NEFT transactions Mn Value of NEFT transactions INR 000 Bn Backed by the revival of economic and commercial activities across the board RTGS NEFT and IMPS transactions are on the path to a v-shaped recovery. 260 248 217 122 167 199 2.17 2.15 2.02 1.21 1.69 2.07 - 0.50 1.00 1.50 2.00 2.50 - 50 100 150 200 250 300 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 IMPS Transactions Total IMPS transactions Mn Value of IMPS transactions INR 000 Bn

slide 16:

Annexes

slide 17:

17 All rights reserved. This document is proprietary and confidential. Annex 1: NPCI’s key payments systems and channels The National Payments Corporation of India NPCI is an umbrella organization that operates retail payments and settlement systems in India. It was established in 2008 by the Reserve Bank of India RBI and Indian Banks’ Association IBA to create a robust payment and settlement infrastructure in India. BBPS IMPS BHIM App. UPI BHIM Aadhaar Pay BharatQR AePS USSD 99 RuPay NETC FASTag Unified Payments Interface is a real-time interbank payment system to send and receive money. Consumers can participate in P2P transfer as long as they both have an account in one of the registered banks. BHIM Aadhaar Pay is an Aadhaar or biometric- based payments interface. It enables real-time payments to merchants through biometric authentication by using the Aadhaar number of the customer. BharatQR is a common QR code developed by the NPCI for the ease of payments and interoperability. AePS is an interoperable instrument that allows banking transactions at PoS MicroATMs through business correspondents of any bank by using Aadhaar or biometric authentication. The USSD channel service for UPI mobile banking uses quick codes for transactions and does not require a smartphone or access to the internet. BBPS is a one-stop ecosystem for the payment of all bills. It provides an interoperable and accessible “anytime anywhere" bill payment service to all customers across India with certainty reliability and safety. BHIM is a smartphone mobile application that acts as client software for the Unified Payments Interface. FASTag is a device that employs Radio Frequency Identification RFID technology to enable direct toll payments while the vehicle is in motion. Immediate Payment Service is a real- time interbank payment system widely used for money transfer in India. RuPay is a domestic card product of India developed by the NPCI. The card has a magnetic stripe for backward compatibility and an EMV chip.

slide 18:

18 All rights reserved. This document is proprietary and confidential. Annex 2: Status of India’s payments infrastructure Parameters As on Data million 1 PMJDY beneficiaries July 2020 397.20 2 Aadhaar assigned May 2020 1214.57 3 Smartphone users January 2020 500.00 4 Active internet users November 2019 504.00 Rural internet users November 2019 227.00 Urban internet users November 2019 205.00 5 Cards May 2020 892.53 Credit cards May 2020 57.18 Debit cards May 2020 835.35 6 RuPay cards July 2020 294.60 7 Pre-paid Payment Instruments PPIs May 2020 1868.94 Wallets May 2020 1730.23 Cards May 2020 138.71 8 ATMs May 2020 0.23 Bank-owned ATMs May 2020 0.21 White-label ATMs May 2020 0.02 9 Micro ATMs May 2020 0.28 10 POS May 2020 5.02 11 BHIM Aadhaar Pay POS February 2020 1.09 12 Bharat QR May 2020 2.06 13 Banking outlets in villages March 2019 0.60 Branches March 2019 0.05 BC agents March 2019 0.54

slide 19:

19 All rights reserved. This document is proprietary and confidential. Annex 3: Additional payment system indicators 40.08 38.64 34.50 87.55 100.07 99.07 111.09 112.01 99.93 144.62 179.29 197.49 - 50.00 100.00 150.00 200.00 250.00 - 20.00 40.00 60.00 80.00 100.00 120.00 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Cash withdrawals at Micro ATMs Total withdrawals at micro ATMs Mn Value of withdrawals at micro ATMs INR Bn 8.2 8.5 6.4 5.5 11.7 12.2 2.9 2.7 2.6 2.7 3.0 2.8 34.1 10.3 9.7 8.7 15.0 15.5 - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 AePS transactions: Additional non-financial transactions eKYC verification transactions Mn Demographic queries Mn AePS tokenization Mn 202 188 164 77 103 116 107 90 28 43 666 621 506 208 322 351 334 267 81 135 - 100 200 300 400 500 600 700 - 50 100 150 200 250 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Credit card transactions Total credit card transactions Mn Credit card transactions POS Mn Value of credit card transactions INR Bn Value of credit card transactions POS INR Bn 151 140 124 231 115 137 0.09 0.09 0.08 0.19 0.14 0.12 - 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20 - 50 100 150 200 250 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 APBS transactions Total APBS transactions Mn Value of APBS transactions INR 000 Bn

slide 20:

20 All rights reserved. This document is proprietary and confidential. Our impact so far International financial social and economic inclusion consulting firm with 20+ years of experience 180+ staff in 11 offices around the world Projects in 65 developing countries Some of our partners and clients Developed 275+ FI products and channels now used by 55 million+ people 550+ clients Trained 9000+ leading FI specialists globally Implemented 850 DFS projects 850 publications Assisted development of digital G2P services used by 875 million+ people MSC is recognized as the world’s local expert in economic social and financial inclusion

slide 21:

Asia head office 28/35 Ground Floor Princeton Business Park 16 Ashok Marg Lucknow Uttar Pradesh India 226001 Tel: +91-522-228-8783 | Fax: +91-522-406-3773 | Email: manojmicrosave.net Africa head office Shelter Afrique House Mamlaka Road P .O. Box 76436 Yaya 00508 Nairobi Kenya Tel: +25-420-272-4801 | Fax: +25-420-272-0133 | Email: anupmicrosave.net MSC corporate brochure | Contact us at infomicrosave.net

authorStream Live Help