/Paytm Bank has lowest UPI failure rate

Paytm Bank has lowest UPI failure rate

(This story originally appeared in on Dec 22, 2020)

Paytm Payments Bank recorded the lowest ratio of failures for remittances using Unified Payments Interface (UPI) among the top 20 banks that account for 95% of transactions. Paytm Bank had a transaction decline ratio of 0.8 for every 1 lakh transactions as against the industry average of 17 per 1 lakh.

According to National Payments Corporation of India (NPCI) data for November, of the 226 crore UPI transactions, SBI had the largest share of 26%, followed by Axis Bank (11%), HDFC Bank (8%), Paytm Bank (8%) and ICICI Bank (6%). SBI processes over 2 crore transactions daily as against 60 lakh by HDFC Bank and 56 lakh by Paytm Bank.

Though SBI has the largest share, it is also responsible for bringing down the industry average in terms of declines. NPCI’s data shows that SBI reported 31 technical declines for every 1 lakh transactions, doing better than only Bank of India, which had 33 failures. Technical decline rate reflects the reliability of the platform. NPCI defines these declines as payments that failed due to technical reasons, such as unavailability of systems and network issues on bank or NPCI side.

Among the public sector banks, the best performer was Oriental Bank of Commerce, which matches Paytm Bank’s rate of 0.8 per lakh but it has less than 1% of total volumes. Bank of Baroda at 5%, had the highest market share in UPI transactions among nationalised banks, followed by Punjab National Bank (4%), Bank of India (3%) and Union Bank of India (3%).

“Our performance is a testament to the hard work that the team puts in to provide the best technology infrastructure in the global banking space. We are well ahead of others when it comes to leveraging AI and Big Data to offer innovative products & services to our customers across the country. Our tech team, which comprises the best minds in the business, works round-the-clock to provide a seamless and efficient experience,” said Satish Gupta, MD & CEO, Paytm Payments Bank. He added that for most banks the UPI transactions are driven by third-party apps, Paytm Bank is the only one in the country to organically drive UPI transactions. Google Pay and PhonePe currently dominate third-party apps in UPI payments.

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