UPI Transactions in India Grow by 45% in a Year, Reaching Rs 20.64 Trillion
Payments through the Unified Payments Interface (UPI) have seen a significant increase, growing by 45% over the past year, according to data from the National Payment Corporation of India (NPCI). The total value of transactions in July 2024 reached Rs 20.64 trillion, marking the third consecutive month with transactions exceeding Rs 20 trillion.
In June 2024, the total UPI transaction value was Rs 20.07 trillion, while in May it was Rs 20.44 trillion. The average daily transaction value through UPI in July 2024 was Rs 466 million, or about Rs 66,590 crore. Compared with June, the volume of UPI transactions grew by 3.95% in July, while the value of transactions increased by 2.84%.
In the first four months of the current fiscal year (2024-25), UPI recorded transactions amounting to Rs 80.79 trillion across approximately 55.66 billion transactions. In 2023-24, total UPI transactions were 131 billion, compared to 84 billion in 2022-23.
The Reserve Bank of India’s (RBI) monthly bulletin reported that over the last four years, UPI transactions have seen a ten-fold increase in volume, from 12.5 billion transactions in 2019-20 to 131 billion transactions in 2023-24, accounting for 80% of the total digital payment volumes.
PhonePe and Google Pay dominate the UPI market, holding a combined market share of 86%, according to the Boston Consulting Group (BCG) Banking Sector Roundup for 2023-24. A shift in digital payments was noted, with credit card transactions doubling over the past three years, while debit card transactions declined by 43% year-on-year.
UPI has contributed to financial inclusion at the grassroots level by making digital payment platform technology and device agnostic. Digital payments in India are hitting fresh highs as citizens increasingly adopt emerging modes of online transactions. The Indian government aims to ensure that the benefits of UPI extend beyond India, allowing other countries to benefit from it as well.
UPI is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly using a Virtual Payment Address (VPA) created by the customer. The share of UPI in digital payments in India has reached close to 80% in 2023. Today, India accounts for nearly 46% of the world’s digital transactions, based on 2022 data.
Doubts Revealed
UPI -: UPI stands for Unified Payments Interface. It’s a system in India that allows people to transfer money between bank accounts using their mobile phones.
Rs 20.64 Trillion -: Rs stands for Indian Rupees, the currency of India. 20.64 trillion means 20,640,000,000,000 rupees, which is a very large amount of money.
Average daily transaction value -: This means the total amount of money transferred each day on average. In July, it was Rs 466 million, which is 466,000,000 rupees.
PhonePe -: PhonePe is a popular app in India that people use to send and receive money using UPI.
Google Pay -: Google Pay is another app that people use to make payments and transfer money using UPI.
Indian government aims to extend UPI benefits globally -: This means the Indian government wants people in other countries to also use UPI for making payments and transferring money.
