Indian businesses and consumers are leveraging the potential of the digital economy. The digital payments landscape is underway, and there isn’t any scope for slowing down anytime in the future. As the internet culture is thriving, even in the rural parts of the nation, digital payment solutions are taking the lead.Â
In accordance with all the other digital payment solutions, cashless payments are now taking a leap with BBPS (Bharat Bill Pay System). It is managed by the NPCI (National Payments Corporation of India). It has triggered the shift from traditional cash payments to processing online transactions.
So, let’s find out how BBPS, among other digital payment solutions, is changing the payment ecosystem of India.
What’s the Current Status of the Indian Payments Ecosystem?
In the past decade, the count of digital transactions was minimal, and the growth recorded between 2010 and 2016 was only 26%. But, with the demonetisation efforts, the annual growth was scaled to around 56% between 2016 and 2018. But even then, the payment ecosystem of the nation was disorganised back then, with many players and a lack of technical proficiency.
But as of today, the adoption of digital payment instruments has scaled and acceptance of such transactions has been made default. Soon, the cybersecurity measures were integrated, and the KYC norms were implemented to address security concerns. RBI and Indian governments took adequate measures to build a positive environment for market players to offer tailored solutions for consumers to adopt a streamlined bill payment system in India.
Rate of BBPS Adoption in India and its Growth
The utility billing approach in India was a bit fragmented market with many players. Each of them was acting as an individual entity, which ultimately slowed down the payments ecosystem. The first pilot implementation of BBPS was launched on 31st August 2016, and the live operations commenced in October 2017.
As of today, BBPS processes more than 80 million transactions on a monthly basis. There are more than 20,000 billers on the system, making it a successful inclusion. Since 2018, BBPS has been expected to grow at a consistent rate of 500% CAGR.
Some factors, such as consistent onboarding of the new billers, integrating BBPS with banking or mobile applications and specifying new categories of billers, are further scaling its adoption.
Features of BBPS that are Scaling its Popularity Among Indians
Some of the BBPS features that scale the popularity of this system among Indians are:
- It is interoperable, which makes it work as an integrated system for bill payments.
- It is highly accessible, facilitating seamless bill payment through physical or digital channels.
- It offers multiple payment modes for consumers without using physical cash for bill payments.
Conclusion
So, this is how you can expect BBPS to change the digital payments ecosystem of the nation. It is a robust system that can offer a hassle-free bill payment solution, which is highly reliable and innovative. It helps businesses and consumers to function effectively without the need for making or accepting physical payments.
If you are a business, you will need a BBPS API Provider to integrate this system into your service platform. You can then enable your customers with the facility to make seamless bill payments to a plethora of billers over your unified platform.
