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.
Summary/Static Details
Why in the news? Digital Payment Transactions Grow by 46% from FY 2021-22 to FY 2023-24
Total Digital Payment Growth (FY 2021-22 to FY 2023-24) 46% CAGR (8,839 crore → 18,737 crore transactions)
UPI Transaction Growth 69% CAGR (4,597 crore → 13,116 crore transactions)
UPI Share in Total Digital Transactions (FY 2023-24) 70%
Banks Offering Digital Payments (UPI, RuPay, etc.) 216 (FY 2021-22) → 572 (FY 2023-24)
Key Drivers UPI growth, QR codes, POS terminals, TPAPs, DIGIDHAN Mission
Government Initiatives Incentive Scheme for Banks (ISB), Digital Payment Awareness
Shivam

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