UPI crosses 10 billion monthly transactions, confirms NPCI
India's digital payments framework, Unified Payments Interface (UPI), surpassed 10 billion monthly transactions in August, with a transaction value of INR15.18tn ($204.77bn)
The centre’s contactless digital payments framework, Unified Payments Interface (UPI), crossed 10 billion monthly transactions in August, confirmed the Reserve Bank’s non-profit agency, National Payments Corporation of India (NPCI). In a tweet, the body confirmed that payments made on UPI crossed this feat on Wednesday.
Monthly transaction count on UPI crossed 10.24 billion on 30 August, with net transaction value of ₹15.18 trillion.
Transactions on UPI have grown by over 50% year-on-year, with August last year registering 6.58 billion monthly transactions. The payments network neared the 10 billion mark in July itself, registering 9.96 billion transactions last month—after the month of June saw a marginal sequential drop from May.
UPI crossed 1 billion monthly transactions for the first time in October 2019, thus taking less than four years to grow 4x in its adoption.
Confirmation of total transaction volume and value for the month of August was yet to be updated by NPCI until press time.
Industry stakeholders said that the payments framework has further room for growth. Sunil Rongala, senior vice-president and head of strategy for India at payments services firm Worldwide said, “At 10 billion, there is still a lot of room for UPI transactions to grow. The data shows that UPI’s peer to merchant (P2M) transactions are growing at a pace of over 100% YoY, and have a higher share than peer to peer (P2P) transactions. Over time, P2M transactions will drive UPI transactions growth, and it will be no surprise if monthly UPI transactions hit 20 billion in the next 18-24 months.”
On 13 March, Bhagwat Kisanrao Karad, union minister of state for finance, said in a written reply at the Lok Sabha that proliferation of digital payments systems such as Aadhaar Payment Bridge, Aadhaar-enabled Payment System (AePS), UPI and UPI Lite saw “a growth of more than 200% during four years since FY19.” Karad further added that the growth was driven by Meity’s incentive scheme to promote RuPay debit cards and “low-value BHIM-UPI transactions.” A total quantum of ₹2,600 crore was earmarked for the scheme for FY23.
July data of UPI transactions released by NPCI showed merchant transactions to have accounted for a greater share of total transaction volume, with 5.78 billion or 58% of all UPI transactions done between users and merchants. However, user-to-user UPI transactions led significantly by total value—nearly 75%, or ₹11.48 trillion was transacted on the network in July.
In terms of distribution of UPI transactions by apps, domestic fintech and ecommerce platform PhonePe led UPI market share in June, with over 47% of all UPI transactions taking place through the latter. Google Pay (35%) and Paytm (14%) ranked second and third, respectively.
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Business NewsEconomyUPI crosses 10 billion monthly transactions, confirms NPCI
First Published:31 Aug 2023, 09:42 PM IST
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