Unified Payments Interface (UPI) has set a new milestone by processing over 14 billion transactions, amounting to a staggering Rs 20.45 trillion in May, as per data released by the National Payments Corporation of India (NPCI).
Compared to April, UPI witnessed a 5% increase in transaction volume and a 4% surge in transaction value, marking unprecedented growth since its inception in April 2016.
Despite a slight decline in transaction volume and value in March, UPI’s performance rebounded significantly in May, showcasing its resilience and widespread adoption in the digital payments landscape.
Looking ahead, NPCI is expanding UPI services globally, aiming to introduce it to more countries beyond India. The Reserve Bank of India (RBI) and NPCI are collaborating to extend UPI to 20 countries by FY29, demonstrating its potential as a globally recognized payment solution.
In FY24, nearly four out of five digital payments in India were conducted via UPI, according to RBI’s annual report, highlighting its dominance in the digital payments ecosystem.
As of April, PhonePe, Google Pay, and Paytm remained the top players in the UPI market, with PhonePe leading in both transaction volume and value share.
However, NPCI is reportedly reconsidering its decision to impose a 30% market share cap on UPI apps by the end of 2024, indicating potential regulatory changes in the future.
Amidst this dynamic landscape, industry giants like Adani Group and Reliance Group are gearing up to enter the UPI and digital banking space, signaling further competition and innovation in the sector. Adani Group is exploring licensing options for UPI operations, while Reliance Group’s Jio Financial has announced the launch of the JioFinance app, reflecting the evolving landscape of digital finance in India.
