India’s flagship payment platform Unified Payments Interface (UPI) has achieved a 45% YoY growth to reach 14.44 billion in transaction volume in July. The transaction value also rose 35% YoY to Rs 20.64 trillion as per National Payments Corporation of India (NPCI) data released on Thursday.
The growth has marked the third consecutive month when the transaction value has crossed the Rs 20 trillion mark, being Rs 20.07 trillion and Rs 20.44 trillion in June and May respectively. On a QoQ basis, the transaction volume rose 3.95%, and the transaction value grew by 2.84% in July.
The report shows that UPI is recording 14 billion transactions a month, noting 424 million unique users and a total of 13.89 billion users in June 2024. The transaction volume marginally declined 1% MoM in June from 14.04 billion in May. UPI transaction volume for peer-to-merchant (P2M) has taken over peer-to-peer (P2P) while small value payments in high numbers have been seen.
Meanwhile, the average daily transaction count was 463 million in June followed by 466 million in July, with the latter amounting to Rs 66,590 crore average daily transaction value.
In FY24, UPI crossed the 100 billion transactions mark for the first time with 131 billion total transactions up against 84 billion in FY23. In FY25, UPI has recorded 55.66 billion transactions so far amounting to Rs 80.79 trillion.
RBI Governor Shaktikanta Das has shared that UPI, which was introduced in 2016 by NPCI to facilitate inter-bank transactions, has revolutionized Digital Public Infrastructure, by making transactions efficient and faster for end users in retail. Earlier in the year, the director at RBI headquarters in the Digital Payments Awareness Week programme in Mumbai, stated that digital transactions have grown 90X in the last 12 years. “In 2012-13, there were 162 crore digital payments. This number has grown to 14,726 crore in 2023-24 till February,” he added.
RBI’s recent report on currency and finance indicated that UPI has achieved 10X growth in transaction volume in the past 4 years, going from 12.5 billion in 2019-20 to 131 billion in 2023-24 being 80% of overall digital payment volume in India. The RBI chief also remarked that India accounts for 46% of overall digital payments worldwide.
UPI is adding nearly 60 lakh users a month with positive contributions of RuPay credit card and overseas launch. UAE-based AI Maya Supermarket made the announcement to pilot the acceptance of UPI payments across its outlets in the country among other Middle East countries and France also accenting India’s UPI transactions.
While Paytm showed flat growth in June 2024, PhonePe and Google Pay posted a marginal decline in both the value and volume of UPI transactions in the same period.
NPCI data indicates that PhonePe had the largest volume-wise market share in UPI with 48.3% in June followed by Google Pay having 36.7% and Paytm with 8% market share.
Notably, NPCI has set a target of achieving 1 billion daily UPI transactions in the coming years. It has launched a number of advanced and innovative features and services to enhance and promote the use of UPI, such as UPI Lite, credit lines on UPI, UPI LITE X, BillPay Connect, Tap & Pay, and Hello! UPI.
