Record UPI Transactions in India: A Milestone in Digital Payments
In January, UPI transactions in India broke records with volumes exceeding 16.99 billion and values surpassing Rs 23.48 lakh crore. UPI now represents 80 percent of retail payments, contributing significantly to India’s digital economy. The ecosystem includes over 80 apps and 641 banks, with a rising preference for transactions under Rs 500, showcasing user trust. Furthermore, UPI facilitates international payments in over seven countries, enhancing convenience for Indian travelers.
In January, UPI transactions in India achieved a record-breaking milestone, surpassing 16.99 billion in volume and exceeding a total value of Rs 23.48 lakh crore, as reported by government data. This significant increase highlights the remarkable growth of the digital payments landscape for the fiscal year 2023-24, with UPI accounting for 80 percent of all retail transactions nationwide.
For the fiscal year 2023-24, total UPI transaction volume exceeded 131 billion, with a cumulative value that surpassed Rs 200 lakh crore. The Ministry of Finance attributed UPI’s popularity to its user-friendly interface and the expanding network of banks and fintech platforms, making it the preferred method for real-time payments among millions of users in India.
As of January, the UPI ecosystem has seen participation from over 80 applications, including both bank and third-party providers, and 641 banks are actively engaged. Within this period, person-to-merchant (P2M) transactions made up 62.35 percent of the overall UPI volume, while person-to-person (P2P) transactions comprised 37.65 percent. Notably, 86 percent of P2M transactions involved amounts of up to Rs 500, highlighting the trust users place in UPI for small-value transactions.
During a recent visit to India, Professor Carlos Montes from Cambridge Business School remarked that UPI serves as an exemplary model for other nations looking to enhance their digital payment systems. Montes attended the NXT event at the Bharat Mandapam, where he was briefed on the operational success and trends of the UPI system.
Additionally, UPI’s global reach is expanding, facilitating hassle-free international transactions for Indian travelers. Currently, UPI is operational in over seven countries, including significant markets such as the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius, thereby enabling seamless payments abroad.
The rapid growth of UPI transactions reflects the increasing trust and reliance of Indian citizens on digital payments. With its record achievements in January and ongoing global expansion, UPI has not only enhanced domestic payment solutions but also positioned itself as a global leader in digital finance.
Original Source: www.ndtv.com