So, who signs up for these mobile money IDs and why don’t they use it after signing up? According to data published by the National Payments Council of India, the Interbank Mobile Payment Service saw another month of growth in terms of signups, with over 2.5 million MMIDs issued, leading to a month on month growth in MMIDs of 22.27%, but the total number of transactions remained remarkably low at 9,989. Think about it – it means that less than 7 people in 10,000 with MMIDs are transacting each month. Makes you wonder what banks are doing to encourage transactions among their customers.
Things might change once merchant transactions are enabled (at present only P2P payments are allowed), but there is no guarantee of that; the pilot for merchant transactions began in June.
28 banks have so far signed up for IMPS, and 7 of them are still in soft launch. Two others – the State Bank of Hyderabad and State Bank of Bikaner and Jaipur are being certified.
– July 2011: 11.70M IMPS Mobile Money IDs
– June 2011: 11.38M IMPS Mobile Money IDs; Transactions Decline Marginally
– IMPS To Pilot Merchant Transactions; Should Not Increase Rates
– Why Are Banks Not Promoting The IMPS Money Transfer Service?