ICICI Bank has 8.3 million virtual payment addresses (VPAs), which were generated on its mobile applications, at the end of the quarter ended December 31, 2017 (Q3FY18). The bank acquired over 158,000 merchants through its mobile payments application EazyPay in Q3FY18. The bank hadn’t disclosed the number of merchants that it acquired in the preceding quarter, but in Q1FY18, the bank had mentioned that it acquired 130,000 merchants through the EazyPay application.
The VPAs were created through iMobile (exclusively for ICICI Bank customers), Pockets wallet (open to non-bank customers as well), and other partner platforms.
The bank does not give information on the number of transactions which it processes or the value of the transactions. It is also unclear how many VPAs are active at the moment. However, the number of merchants it acquires is significant as banks are allowed to charge merchants a higher fee than compared to P2P payments on the Unified Payment Interface (UPI). The merchant discount rate (MDR) — the fee borne by the seller to provide services — is 0.25% for payments below Rs 1,000 and 0.65% for all other charges.
It’s worth noting that the UPI saw an increase of 4% in the total transaction volumes taking place between December 2017 and January 2018, according to data published by the National Payments Corporation of India (NPCI). The total number of transactions in January 2018 were around 34 times higher than in the same month last year, while the amount transacted in January 2018 was 9 times higher than in the corresponding month last year. More here.
Its various digital channels, such as Internet, mobile banking, and POS, including touch banking, phone banking and debit card transactions at e-commerce platforms, together accounted for about 81.3% of all the savings account transactions in the April-December 2017 period, as compared to 75.3% in the corresponding period in FY17. The bank mentioned that this was primarily driven by growth in the share of mobile banking transactions, which witnessed a 65% increase in volume in Q3FY18.
The number of ICICI Bank debit card transactions at point-of-sale terminals increased by 38% to 285.92 million for the nine-month period April-December 2017, as compared to 206.66 million for the corresponding period in FY17. The total value of debit card transactions for the April-December 2017 period stood at Rs 41,137 crore, up 40% from Rs 29,366 crore for the same period in FY17.
While the number of ICICI Bank credit card transactions increased by 34% to 140.28 million for the April-December 2017 period, from 104.76 million in the same period in FY17. The total value of credit card transactions for the April-December 2017 period was Rs 37,536 crore, up 47% from Rs 25,598 crore in the same period in FY17.
Micro Credit Partnerships
- In November 2017, ICICI Bank and Paytm partnered to offer short-term credit to users. The credit given to customers will be interest-free for 45 days and the bank said that it will give loans of up to Rs 20,000. Initially, this will be available for select ICICI Bank customers who are on Paytm and will later be extended to other bank customers as well who use Paytm.
- In January 2018, ICICI Bank and Ola signed a Memorandum of Understanding (MoU) to provide small ticket digital credit to Ola users. The details of the offering were yet to be chalked out, but an ICICI Bank spokesperson had told MediaNama that it would be similar to the ICICI Bank-Paytm offering.