The banking consortium, set up to improve mobile payments in the country, seems to be getting some place with their new payment mechanism– the Immediate Payment Service (IMPS) a.k.a Inter-bank Mobile Payment Service. In the trailing twelve months, value of IMPS transactions in India has seen a jump of nearly 22X, signaling a sharp rise in mobile fund transfers in the country.
IMPS is a mobile based payment mechanism introduced in 2010 by the National Payments Corporation of India to allow customers to transfer money instantly, facilitating instant remittance across multiple platforms.
More than 7 lakh transactions worth over Rs 400 cr were carried out using this mechanism in July 2013 alone. This when compared to the a total transactions amount of Rs 18.25 cr from 2.80 lakh transactions in August 2012, shows a huge increase in IMPS usage over the last 12 months.
The analytics over the year also provides another interesting insight, that of the growth in transactions amount over a years time. Back in August 2012 the average transaction amount was at Rs 645.7, this has nearly increased 9X in a years timel to touch Rs.5818.5 by July 2013.
Currently there are 59 banks in India that support payment through the IMPS channel. Every remitter and beneficiary should have an Mobile Money Identifier(MMID), which is a seven digit random number issued by the bank upon registration for IMPS.
In July 2013 these banks in total had issued 5.2 cr MMIDs to customers for transacting.
The bank wise data shows a trend where the number of transactions haven’t been distributed evenly among the banks. ICICI bank leads the pack by a huge amount with 180.85 lakh transactions, followed by Axis bank and State Bank of India(SBI) with 85.75 lakh and 63.74 lakh transactions respectively.
Axis bank and SBI customers mainly transacted through mobile devices, whereas ICICI bank customers also used the Internet to conduct the IMPS transactions.
How does IMPS work?
To start off, you have to register your mobile number with your bank that offers the IMPS service. Once this is done, you will receive a MMID and MPIN from the bank.
Now to make the transactions, you have to choose the channel to transfer funds i.e mobile phone, ATM or the Internet. The next step involves you entering the receiver’s details i.e MMID and mobile number, amount to transfer along with your MPIN. Once the transaction goes through successfully, both you and the receiver will get a confirmation SMS.
Through the IMPS channel users can carry out Person to Person(P2P), Person to Account(P2A) and Person to Merchant(P2M) transactions from their mobile, Internet or ATM. One of the advantages of IMPS transaction is that it is available 24X7 and even on holidays. This can be payments for utility bills, mobile or DTH recharge, credit card bills, grocery bills, travel ticketing, online shopping and even educational institutes fee payments through this channel.
Recommended Read: Explained: Interbank Mobile Payment Services [IMPS] in India
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