For the month ending May 2017, number of transactions using Prepaid Payment Instruments (Mobile Wallets and PPI Cards combined) declined by 21% to 278.08 million as compared to 352.23 million in April 2017, and grew 292% compared to 70.95 million in May 2016, according to data from the Reserve Bank of India. The amount transacted went up 3% month on month to Rs 10,669 crores from Rs 10,371 crores, while grew 114% year on year from Rs 4,995 crores in May 2016.
Much of decline happened in mobile wallets, which decreased 24.7% month on month to 241.72 million transactions from 320.87 million, but were up 380% year on year from 50.31 million transactions in May 2016. Amount transacted using Mobile Wallets declined 3% month on month – to Rs 7,194 crores from Rs 7,442 crores, but grew 195% year on year from Rs 2,435 crores in May 2016.
The impact of demonetization, which was initiated on November 8th 2016, is evident in the chart below, with the number of transactions and amount transacted growing rapidly for PPIs in December 2016, but continued growth appears to be tricky at this point in time:
Number of transactions for PPIs (wallets + PPI Cards) decreased by 74.15 million in May 2017. Total amount transacted went up Rs 298 crore.
Number of transactions for mobile wallets declined by 79.2 million in May 2017 while the total amount transacted was also down by Rs 248 crore. This is the highest decline in Mobile wallet transactions, ever. In the previous month (April 2017), number of transactions had increased by 13.4 million, and the amount transacted had increased by Rs 130 crore.
With decrease in the number of transactions for the current month, the average amount per transaction has grown. In May 2017, average amount per transaction for Mobile Wallets was Rs 298. A year ago it had been Rs 484.
Data Source: RBI