Cross-border payment sees raid growth in third quarter of 2021

SWIFT inflow has decreased by 5.97%, while the outflow has increased by 80.49%

The cross-border payments maintained rapid growth in the third quarter of 2021, according to the payment system data of the Royal Monetary Authority (RMA).

In the third quarter, International Payment Gateway (IPG) recorded 10,621 transactions of a value of Nu 226.73mn. The SWIFT recorded a total of 8,423 transactions, which is however a decrease of 5.97% in inflow and an increase of 80.49% in outflow when compared to the same quarter last year. 

The payment transactions were made through various payment channels operated by the RMA and the six banks at the domestic, regional (India), and international (COTI) levels from July to September this year.

In this quarter, the transactions done through SWIFT have increased by 22.87% compared to the same quarter last year. Likewise, transaction has also increased by 2.28% compared to the previous quarter this year.

Likewise, compared to the second quarter of 2021, both inflow and outflow have decreased by 3.62% and 55.12% respectively.

The top three currencies transacted in the member bank SWIFT systems during this quarter are the USD, Japanese Yen (JYP), and Euro.

According to the report, a total of 2,198 transactions of value USD 63,122.91 and INR 627,454.39 were transacted in the third quarter this year.

The volume of the USD transactions has increased significantly by 315.22%, but the value has decreased by 29.71%, and in terms of the INR, the volume has increased by 70.18% and value by 138.22% compared to the same quarter last year.

A total of 25 merchants are registered with the IPG platforms.

Under the USD, Samuh and Leo Entertainment reportedly had the maximum transactions both in terms of volume and value.

The highest number of INR transactions processed in the IPG is by Samuh and Songyala, while in terms of value, the highest was reported by Wangchuk Hotel and Bhutan Spirit Sanctuary.

During this quarter of 2021, RuPay has recorded 371 transactions worth Nu 1.47mn, a decrease of 56.15% by volume and 57.28% by value compared to the same quarter last year. In comparison to the 2nd quarter this year, the volume has increased slightly by 2.77%.

Meanwhile, domestic payments recorded a total of 44.83mn transactions, comprising intra and interbank domestic transactions worth Nu 206.37bn during the third quarter this year. It is an increase of 116.91% by volume and 121.76% by value compared to the same quarter last year.

The increase is mainly contributed by the increased usage of QR scan at the merchants and payment gateway for online sites.

In addition, the report includes the transaction of an additional bank- Digital Kidu, which offers all-digital banking services and commenced its operations in February 2021.

Kinley Yonten from Thimphu