Digital payment systems which had seen a vibrant growth since demonetisation in India has finally seen a dip in April 2020. Fall in this sector was not anticipated as there are obstructions for physical transactions to be carried out due to the nation-wide lockdown in place and experts expected more transactions to be carried on digitally. Now the fall in digital payment is being tracked down to the overall fall in economic activity globally due to the Covid 19 pandemic that has gripped the whole world.
The several digital payment platforms operated by the National Payment Corporation of India like the Bharath Bill Payment System, Unified Payments Interface and Immediate Payment services all showed a major dip in both value and volume terms in April 2020. This is the first time these payment systems show a record decline. The only payment system which has shown atleast a meagre growth is that of the payment systems which use Aadhar. This increase in EPS is being explained as a result of the increased donations to the various relief funds of the government institutions.
UPI, which is the most used payment platform in India showed a sharp decline of 26.7% in the value of transactions in April as compared to the preceding month. The volume of transactions also show a major plunge of more than 20%. The Immediate payment system which is usually used for bulk transfer of funds has also registered more than 40% decline in both value and volume of transactions.