UPI transactions rise 6.7% to 2.2 billion in November

Unified Payments Interface (UPI) transactions grew 6.7% sequentially to 2.2 billion in November, data released by the National Payments Corp. of India (NPCI) showed. Around 1.21 billion transactions were recorded in November 2019.

The value of UPI-based payments during the month was at ₹3.90 trillion, compared to ₹3.86 trillion in October. Now, 200 banks have gone live on UPI from 189 banks a month ago.

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For the first time, UPI transactions breached the 2-billion mark in October. The uptick in volumes was fuelled by higher demand during the festivals and change in consumer preference for contactless payments.

Last month, NPCI managing director and chief executive Dilip Asbe said that daily UPI transactions could touch 1 billion in two to three years as new use cases emerge. UPI transactions have seen 10-times growth, and is expected to grow at a similar rate as new use cases, such as retail investing for initial public offerings (IPOs) and autopay, he added.

On 5 November, NPCI had allowed WhatsApp to use the UPI platform for rolling out its payment services. With a 400-million user base in India, its entry in the e-payments space is expected to increase the adoption of UPI.

Experts said the rise in UPI payments indicates that people are becoming more comfortable with digital transactions. “Now, investors seamless apply for IPOs via UPI, similarly e-mandate for recurring payments of up to ₹2,000 have helped drive consumption in a big way. UPI has massive potential to drive financial inclusion at the grassroots and expand services through new use cases,” said Mandar Agashe, founder, Sarvatra Technologies, an end-to-end technology solutions provider for next-generation banking.