India Post launches digital payments service DakPay

India Post launches digital payments service DakPay
Photo Credit: Reuters
16 Dec, 2020

In a bid to push digital financial inclusion in the last mile, the Department of Posts (DoP) and the India Post Payments Bank (IPPB) have launched a digital payments service, dubbed ‘DakPay’.

“Dak Pay brings simplified payment solutions to all by offering all customers access to the banking and payments products and (postal) services either through an app or in assisted mode with the help of the trusted postman,” Pradipta Kumar Bisoi, secretary of posts and chairman of the IPPB board, said.

The platform, announced by IT minister Ravi Shankar Prasad in a virtual event on December 15, offers a host of services, including UPI and virtual debit card-backed domestic money transfers, QR code-based merchant payments, utility bill payments and interoperable banking services for the customers of any bank through Aadhaar-enabled payment system (AePS).

Read: India Post Payments Bank launches Aadhaar-enabled payments system

Commenting on the platform’s potential at the event, Prasad said, “The launch of DakPay adds up to the legacy of India Post, which is about reaching out to every household. This innovative service will not only give access to banking services and postal products online but also is a unique concept where one can order and avail postal financial services at (their) doorstep.”

“I strongly believe that this double strength of service offerings in the form of online payments and home delivery of financial services, combined with (the) nationwide network of (the) postal department, will be another big leap towards Prime Minister’s vision of a financially inclusive and an Aatmanirbhar Bharat,” he said.

The launch of DakPay comes at a time when Google Pay and PhonePe dominate the digital payments category. Last month alone, the two platforms drove more than 82% of the 2.21 billion transactions recorded on the four-year-old UPI infrastructure. 

Also active in the UPI segment are Paytm, Amazon Pay, BHIM and WhatsApp Pay.