Digital Payment Transactions Grow by 46% from FY 2021-22 to FY 2023-24

The total digital payment transactions in India increased from 8,839 crore in FY 2021-22 to 18,737 crore in FY 2023-24, registering a 46% CAGR (Compound Annual Growth Rate). This growth was primarily driven by the Unified Payments Interface (UPI), which grew at a CAGR of 69%, reaching 13,116 crore transactions in FY 2023-24, capturing over 70% of total digital payments. The “Incentive Scheme for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M)” has played a key role in driving this growth by encouraging digital transactions across the country.

Key Highlights of Digital Payment Growth (FY 2021-22 to FY 2023-24)

1. Growth in Digital Transactions

Total Digital Payments

• FY 2021-22 – 8,8
• nsactions (46% growth)

UPI Transactions

• FY 2021-22 – 4,597 crore transactions
• FY 2023-24 – 13,116 crore transactions (69% CAGR)
• UPI Share in Total Digital Transactions (FY 2023-24) – 70%

2. Factors Driving Digital Payment Growth

UPI’s Dominance: Rapid adoption of UPI for seamless and instant transactions.

Expansion of Digital Payment Infrastructure

• Widespread adoption of QR codes & POS terminals.
• Increased participation of Third-Party App Providers (TPAPs).

Increase in Banks Offering Digital Payment Services

• FY 2021-22 – 216 banks.
• FY 2023-24 – 572 banks.

3. Role of the Government in Promoting Digital Payments

• DIGIDHAN Mission: Established to strengthen India’s digital payment ecosystem.

Incentive Scheme for Banks (ISB) Portal

• Designed to create awareness and ensure seamless data collection.
• Encourages banks to promote UPI and RuPay-based payments.
• Consultations with Stakeholders: Banks and fintech partners engaged for better implementation.