A total of 7.33 million Prepaid Payment Instrument (PPI) transactions worth Rs 4.73 billion were generated, as of February 2013, according to the latest numbers from the Reserve Bank of India. This includes 5.41 million m-wallet transactions worth Rs 1.47 billion, 1.89 million PPI card transactions worth Rs 1.88 billion and 0.03 million paper voucher transactions worth Rs 1.38 billion. RBI however has not provided any break down across different types of wallet – closed wallet, open wallet, semi-closed and semi-open wallets.
Volume of Transactions
– The total number of PPI transactions stood at 7.33 million transactions for February 2013, a significant increase from 6.68 million transactions in January 2013 and 7.18 million transactions in December 2012.
– Among the different instruments, only m-Wallet transactions have shown growth in the number of transactions for the period Dec 2012 – Feb 2013. The number of transactions increased to 5.41 million transactions in February 2013 from 4.66 million transactions in January 2013 and 4.17 million transactions in December 2012.
– PPI card transactions however decreased to 1.89 million transactions in February 2013 from 1.98 million transactions in January 2013 and 2.96 million transactions in December 2012.
– Paper voucher transactions also decreased to 0.03 million transactions in February 2013, from 0.04 million transactions in January 2013 and 0.05 million transaction in December 2012.
Value of Transactions
– The total value of transactions has decreased to Rs 4.73 billion in February 2013 from Rs 4.91 billion in January 2013 and Rs 8.18 billion in December 2012. This indicates that although both the volume and value of PPI transactions have declined, the fall in the value of transactions has been higher than the fall in the volume of transactions, which essentially means that the value per PPI transaction has dropped as a whole.
– The value of transactions has been much lower than the volume of transactions in both January and February 2013 whereas the transaction value was higher than the volume of PPI transactions in December 2012.
– It is worth noting that m-wallet has been the only instrument that has registered a growth in the value of transactions during this period. The transaction value stood at Rs 1.47 billion for February 2013, up from Rs 1.31 billion in January 2013 but down from Rs 1.52 billion in December 2012.
– PPI cards has recorded a dip in the transaction value – Rs 1.80 billion in February 2013 down from Rs 1.93 billion in January 2013. While this dip is not steep, PPI cards had recorded a significant dip in January 2013 to Rs 1.93 billion from Rs 4.58 billion in December 2012, thereby contributing for the majority of the fall registered in the total value of PPI transactions between December 2012 – February 2013.
– Paper voucher has also recorded a decrease in its value to Rs 1.38 billion in February 2013 from Rs 1.67 billion in January 2013 and Rs 2.08 billion in December 2012.
We have recently reported that Oxigen Services India, has partnered with National Payments Corporation of India (NPCI) to launch a non-banking money transfer service – OxiCash Money Transfer. There are also others players in the prepaid mobile wallet segment which includes My Mobile Payments, which had launched a semi-closed m-wallet in November 2011 and Airtel which offers a semi-closed mobile wallet that allows its customers to make utility payments, recharge their phones, among others.
Loop Mobile is another player that partnered with ZipCash to offer a mobile payments service. Nokia Money had shut down earlier this year only to be acquired by mobile financial services firm FINO. In January 2013, State Bank of India has also launched Mobicash Easy, a prepaid mobile wallet service that allows users to transfer funds and make bill payment, among others. It is also worth noting that the Reserve Banking of India has reiterated that it won’t allow telecom operators offering mobile wallets to offer cash-out facility, unless they sign up customers under a Banking Correspondent tie-up.