In May 2018, NPCI initiated IMPS services crossed 120.49 million transactions. These transactions amounted to 1,13,011.57 INR. IMPS is definitely growing by numbers and volumes. Started with the financial inclusion for the unbanked in their agenda, NPCI launched the IMPS service that was available 24 X 7 X 365 for Indians. It overcame the challenges that were faced in NEFT and RTGS as these money transfer facilities were only available during banking hours.
Since its inception, numerous banks have become a part of the IMPS facility. Here is a list of all the member banks for IMPS.
In addition to the unbanked and those seeking for quick money transfer services, there is one more segment that is booming with all the benefits of IMPS. That’s the agency banking sector in India. More on that later. We will first have a reality check on IMPS services.
Benefits Of IMPS
- IMPS has enabled customers to remit funds across India with quick to access mobile instruments.
- Payments have become simpler with the as you just need the mobile number of the beneficiary.
- It is boosting the vision of electronification of domestic payments and money transfer which has made lives easy for Indians.
- IMPS and AEPS have built successful foundations for mobile-based banking services.
IMPS & Technology
Cashless online transactions in India have been witnessing a year on year growth of close to 40%. Money transfer software solutions like UPI or Unified Payment Interface, bank money transfer API, money remittance API are strongly supported and backed by the Govt so as to create a cashless economy.
Key players in the transaction processing technology like Espay have delivered seamless solutions to agency banking networks across India. These solutions include faster transactions, high commissions, lower transaction rates, and facility to conduct more transactions in addition to security and scalability.
This technology facilitates agency bankers with the platform to build and manage their network and ensure that the services reach to the unbanked and hence increase their earning potential.
The Growth Of IMPS
From 1.02 million transactions September 2013 to 120.49 million transactions in May 2018, IMPS has traveled a long way and it is still going strong with a YOY growth rate of almost 68%.
Currently, the highest market share of 38% is of the money transfer businesses, followed by recharge and bill payments, and utility areas by 30% and 12% respectively. Now, the mobile money transfer market is projected to grow at a CAGR of around 30% from 2015-2019.
Future Prospects of Money Transfer Industry
Mobile transfer developments and technologies have a bright future in the current market, especially with the Govt pushing towards a cashless economy. The challenges faced by this industry in the near future are:
- According to data from the Reserve Bank of India, India is the home to the largest number of unbanked families (more than 145 million). Making use of digital banks to connect these families to the mainstream economy will be a challenge.
- Providing merchants and businesses with multichannel payment services.
- Wallet payments through near field communication (NFC)
- Developing a wallet that can cater to financial inclusion and develop the best technology for it and tailor it to the needs of the Indian market consumers as well as business owners.
- Developing analytics solutions as well as payments transaction data analytics so as to generate a major source of payments-related revenue from it
- Betterment of customer service and satisfaction with such a large population as that of India.
- The development, advancement, and adoption of the contemporary international trends such as smartphone wallet & PoS integration
The future of digital expenses lies in providing the best transaction experience to the final user, all the while easing the payment gathering procedure for any business. The subsequent giant step lies in developing robust technology that could be easily integrated into mobile systems and machines to facilitate seamless transactions.
Nevertheless, the speed at which technology development and revolution are happening already, and the manner in which the lower economic classes are embracing digital modernizations, the country might get on a fast-tracked road to going cashless in the conceivable future.
Money transfer applications are digital instruments that allow the storage, transfer and instant payments. Money can be loaded from the bank account via credit/debit cards, net banking, UPI or mobile wallets. Lately, there has been a global emergence of mobile apps that aim towards a specific purpose or kind of money transfer. These include various bank money transfer API, mobile wallets as well as money remittance api.