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UPI recorded 11.24 billion transactions worth Rs 17.40 lakh crore

The Unified Payments Interface (UPI) platform in India has witnessed remarkable growth, breaking records and setting new milestones in recent months. This article delves into the key statistics and trends surrounding UPI transactions, shedding light on the factors driving this surge and offering insights into future projections.

The growth of UPI transactions in India is nothing short of remarkable, with record-breaking values and consistent yearly increases in both volume and value. As consumers continue to shift towards digital payments, and with the introduction of innovative features, UPI is expected to maintain its dominance in the Indian digital payments landscape, setting new milestones along the way.

Record-Breaking Figures

In November, UPI transactions reached a staggering ₹17.40 lakh crore, surpassing the previous high of ₹17.16 lakh crore in October. This amounted to a 1.4% increase in the value of transactions on a monthly basis and an impressive 46% year-on-year growth, as reported by the National Payments Corporation of India (NPCI).

Transaction Volume and Trends

Despite the record-breaking value, the number of UPI transactions in November experienced a slight dip of 1.5%, totaling 1,124 crore compared to the previous month’s 1,141 crore. However, it’s worth noting that year-on-year, transaction volumes saw a remarkable 54% increase.

Festival Season Boost

October witnessed an 8.6% rise in transaction values and an 8.1% increase in transaction numbers. This surge was attributed to heightened consumer spending during the festival season. This trend carried over into November, with a focus on shopping, e-commerce, and travel transactions.

Consistent Yearly Growth

Yearly growth in UPI transactions has been consistently impressive. In the fiscal year 2024 (FY24) thus far, the value of transactions has maintained a growth rate of over 40%, while the volume of UPI trades has consistently grown by over 50%. In FY23, the UPI platform processed a whopping 8,376 crore transactions, aggregating ₹139 lakh crore. This marked a significant leap from the 4,597 crore transactions worth ₹84 lakh crore in FY22.

Drivers of UPI Growth

Market experts attribute the steady growth of UPI transactions to several key factors:

Shift in Consumer Behavior: Consumers are moving away from traditional cash transactions.
Convenience Features: Features like Credit on UPI, Tap & Pay, and Hello UPI are enhancing the user experience.
Merchant Adoption: Increased digital adoption by merchants through third-party payment applications.
Rise of P2M Transactions: The growing share of Person-to-Merchant (P2M) transactions is supporting overall growth.

P2M Transactions on the Rise

The share of P2M trades in total UPI transactions surged to 57.5% in June 2023 from 40.3% in January 2022, and this trend is expected to continue. During the first half of the year (Jan-June), P2M transaction volume saw a staggering 119% year-on-year growth, reaching 2,915 crore transactions, with a value increase of 72% to ₹19 lakh crore. In contrast, Person-to-Person (P2P) transactions also grew by 22% in volume to 2,275 crore, with the transaction value rising by 41% to ₹64 lakh crore.

Future Projections

The future looks promising for UPI transactions in India. Some experts anticipate that UPI transactions could breach the 2,000 crore mark within the next 18-24 months. Furthermore, a report by PwC India suggests that UPI is poised to dominate the retail digital payments landscape, accounting for a staggering 90% of total transaction volumes over the next five years. It is projected that UPI transactions could reach an astounding 100 crore transactions per day by FY27.

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