Home >Companies >News >UPI transactions hit all-time high in June

NEW DELHI : Payments on Unified Payments Interface (UPI) bounced back to record an all-time high of 1.34 billion transactions in June, data released by the National Payments Corp. of India (NPCI) showed. It grew 9% sequentially from 1.23 billion in May, and beat the previous high of 1.32 billion transactions worth 2.22 trillion in February.

UPI transactions had nosedived to 999 million in April, after the government imposed strict lockdown measures, suspending all services, barring essentials. Online payments gradually picked up from May with the phase-wise opening up of the economy.

Experts said digital payments got a renewed push because of the coronavirus outbreak, which prompted people to switch to contactless payments. “The fact that the UPI transactions recorded in June showcase an all-time high clearly indicates that there has been a metamorphosis in digital payments adoption, with the lockdown being the catalyst," said Mandar Agashe, founder and vice chairman, Sarvatra Technologies.

“There are multiple reasons why we have seen such a spurt in digital payments, one of them being that merchants across the country have now opened their doors to digital, and also opening up e-commerce for non-essential goods. Customers have shifted to e-payment for daily necessities and payment of utility, mobile and grocery bills. This has given a major push towards digital payments. With the lockdown being extended across various parts of India, we see this trend moving upwards and more people making digital payments," Agashe added.

UPI payments rose 18% sequentially from 2.18 trillion in May to 2.62 trillion in June. Compared to the year-ago period, such payments grew 78% from 1.46 trillion in June 2019. Transactions through Aadhaar-enabled Payment System (AePS), which allows online interoperable financial inclusion transaction at Micro ATMs through business correspondents of banks, however, fell to 397 million in June from 405 million a month ago.

The covid-induced strict lockdown measures to contain the spread of the infection has disrupted the lives of millions, hitting migrants and other informal sector workers the hardest, said Anand Kumar Bajaj, managing director and chief executive officer, PayNearby, a fintech firm.

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