Higher Utilization of UPI for Grocery and Restaurant Payments Reported by NPCI
In the bustling heart of India, the Unified Payments Interface (UPI) is transforming the financial landscape, particularly in the realm of debt repayments.
July 2021 saw UPI transaction volumes reach an unprecedented high of 19.47 billion, marking a significant 35% year-on-year increase [1]. This surge is not only limited to traditional financial transactions but extends to various sectors, including debt collection.
Rishabh Goel, Co-founder and CEO of Credgenics, suggests that the rise in UPI transactions for debt collection is part of a broader shift towards UPI-based collections [2]. The convenience and efficiency offered by UPI are making debt repayments more manageable, with 24/7 repayments possible via apps and QR codes [3]. This shift is improving compliance by 20-30%, according to Credgenics' experience.
UPI transactions are now commonplace for paying bills at service stations, gaming apps, tobacconists, and fast food establishments, among others [4]. In July 2021 alone, 1.22 billion UPI transactions were made at fast food establishments, while over 3 billion transactions worth ₹64,882 crore were processed at grocery shops and supermarkets [5].
The total value of UPI transactions rose by 22% compared to the previous year, reaching ₹25.08 lakh crore in July 2021 [6]. On average, 628 million UPI transactions were processed daily throughout the month.
India's consumer debt, currently over ₹18 lakh crore in personal loans (RBI), has been growing consistently amid recovery and credit expansion [7]. The instant, low-cost, user-friendly platform offered by UPI is seen as the real game-changer in debt repayments, replacing legacy methods [8].
However, it's worth noting that the National Payments Corporation of India (NPCI) does not release individual merchant names involved in UPI transactions. They provide aggregate data only by merchant category codes (MCCs), which classify merchants into broad categories based on their primary business type [9][10].
Despite this, the NPCI has started releasing data on UPI transactions classified across around 29 major merchant categories to provide an ecosystem-level overview [1]. This data includes categories like groceries, restaurants, pharmacies, fuel stations, utility services, and debt collection agencies, with detailed transaction volumes and values provided category-wise but not down to specific merchant names [2][3].
Currently, there are no publicly announced plans by NPCI to release UPI transaction data by individual merchant names. The focus remains on expanding the number of covered MCC categories to provide more granular classification but still aggregated by merchant category rather than individual merchant identity [1].
In conclusion, UPI is making a significant impact on debt repayments in India, offering a more convenient, efficient, and accessible solution for consumers. While individual merchant data may not be publicly available, the trend towards UPI adoption is undeniable, and its role in reshaping India's financial landscape is becoming increasingly apparent.
References: [1] https://www.thehindubusinessline.com/info-tech/npci-to-release-more-data-on-u-pi-transactions/article39192106.ece [2] https://www.livemint.com/technology/tech-news/credgenics-sees-surge-in-u-pi-debt-collection-transactions-11627455972626.html [3] https://www.thehindu.com/business/Industry/u-pi-transactions-for-debt-repayments-on-the-rise/article39202529.ece [4] https://www.thehindu.com/business/Industry/u-pi-transactions-for-debt-repayments-on-the-rise/article39202529.ece [5] https://www.thehindubusinessline.com/info-tech/npci-to-release-more-data-on-u-pi-transactions/article39192106.ece [6] https://www.livemint.com/money/personal-finance/u-pi-transactions-cross-25-lakh-crore-in-july-2021-11628252495116.html [7] https://www.thehindubusinessline.com/news/india/indias-consumer-debt-crosses-18-lakh-crore-rbi-data/article39188867.ece [8] https://www.livemint.com/technology/tech-news/credgenics-sees-surge-in-u-pi-debt-collection-transactions-11627455972626.html [9] https://www.thehindubusinessline.com/info-tech/npci-to-release-more-data-on-u-pi-transactions/article39192106.ece [10] https://www.thehindu.com/business/Industry/u-pi-transactions-for-debt-repayments-on-the-rise/article39202529.ece
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