The electronic payment is gaining popularity these days. It saw a growth by 70% in value over the last year. But it is still dwarfed by the cheque transfers. Paperless transfers were valued Rs. 22 lakh crore, against cheque transfers valued Rs. 98.9 lakh crore in the fiscal last ended.
The electronic mode of payment includes Electronic Clearance Service (ECS), credit card, debit card, and national electronic funds transfer (NEFT). Last year total number of payments made through cheques was worth Rs 134.1 crore, while electronic payments were not too far at Rs 115.9 crore.
Over the last year the electronic payment grew by 27.7% in number of transactions. While the value of transactions saw a 70% growth. Whereas the cheque transfer saw a 3% decline in both, the number and value of transactions.
The payment gateway has seen explosive growth in the last decade; it grew by 10 times in number and 4 times in value over the last 8 years. The cheques however saw 15% decline in value and a small growth of 31% in numbers for the same period.
NEFT was instrumental in the growth story for electronic payments, a 70.8% rise in volume of transaction, and a 90.6% increase in the value. ECS grew by 4.4% in volume and 4.5% in value.
The maximum electronic payments were made using debit and credit card. Credit cards purchases increased by 20.6%, while the value of transactions grew by 27.9%. Debit cards also saw an uptrend, and grew by around 38% both in value and purchases.