ICICI Bank has 15.4 million virtual payment addresses (VPAs), which were generated on its mobile applications, at the end of the quarter ended June 30, 2018 (Q1FY19). 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 hadn’t disclosed the number of merchants it acquired over its mobile payments application EazyPay this quarter or the last. The last time it gave this number was in Q3FY18, when the bank said that it acquired 158,000 merchants through the EazyPay application.

The bank does not give information on the number of transactions 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.

In this context, it is worth noting that although UPI saw an increase of 30% in the total transaction volumes between May 2017 and June 2018,  the number of transactions declined for the first time in May 2018. Going forward, UPI numbers may fall again given that the government has withdrawn multiple incentives for both merchants and customers alike for making transactions using UPI transactions. Further, the National Payments Corporation of India (NPCI) has asked banks to discontinue Aadhaar-based payments through the UPI and Immediate Payment System (IMPS) channels from August 31st, 2018. That could also have a negative impact on the number of UPI transaction in the coming months.

Digital

Its various digital channels, such as the Internet, mobile banking, and POS, including touch banking, phone banking and debit card transactions at e-commerce platforms, together accounted for about 85 % of all the savings account transactions in the April-June 2018 period, as compared to 81.7% in the corresponding period in FY17.

The bank said that it has also recorded a 57% YoY increase in mobile banking transaction in the quart ending June. The company also added that it has now issued 48.3 million Debit and Credit cards.

Cards

The number of ICICI Bank debit card transactions increased by 16% in Q1FY19 as compared to the corresponding quarter last year. Total transaction volume of debit cards for the quarter stood at Rs 16135 crore.

While the number of ICICI Bank credit card transactions increased by 18% as compared to Q1FY18, the total transaction value of credit cards for the quarter stood at Rs 15855 crore.

Digital initiatives

  • 1.5 million automated transactions performed daily by ‘Software Robotics’
  • 73% market share (by volume) in prepaid RFID tags for electronic toll collection
  • 90% Resolution rate of AI-powered chatbot iPal

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