The National Payments Corporation of India (NPCI) and banks have requested the Finance Ministry to augment the referral bonus on transactions app Bharat Interface for Money (BHIM) as it has been unsuccessful to draw users. The government is taking into consideration the request and may declare modified incentives soon.
Any user who refers BHIM app to another individual receives Rs 10 as an incentive and the user who commences utilizing the app receives Rs 25 as starting cash back. “BHIM referral bonus is Rs 10, which we think is too less to have a magnetic effect on users. We have recommended the government to augment the incentive to Rs 25,” claimed MD of NPCI, AP Hota. “The government is absolutely taking this thought into consideration and is likely to roll out it soon.”
The BHIM app allows transactions utilizing the Unified Payments Interface (UPI). Consumers can carry out immediate bank-to-bank payments and collect and pay cash utilizing their virtual payment addresses and mobile phone numbers.
BHIM app, rolled out in November post demonetization to give confidence to the digital payments, has the support of Narendra Modi, the Prime Minister of India. Until now, a large piece of UPI payments comes from PhonePe, the payments arm of Flipkart, and BHIM. “Forty-five percent of the payments are taking place via BHIM and 40% is being carried out by PhonePe,” claimed Hota to the media in a statement. “Thirty-six banks mutually now contribute for merely 15% stakes of UPI payments, which is very less.”
UPI recorded 10.2 Million payments in June 2017, a 5-fold augment since December 2016. It had a stake of a tad bit more than 1% in overall number of electronic transaction system payments. “We are short of 40 Million payments of our target for the quarter one through UPI,” he claimed to the media in statement. “In the first 3 months of this fiscal year, UPI has just recorded 26 Million payments.”
Bankers claimed that they have hesitations over the capability of reaching the aim of 25 Billion payments. Well, let us see if this move of augmentation in incentives will attract the users or not.