Transactions using the UPI (Unified Payments Interface) network touched a record high in July 2023, both in terms of volume and value, after witnessing a slight dip in June 2023.
Growth in Volume and Value :
The value of total UPI transactions
touched ₹15.34-lakh crore
, up 4 per cent
m-o-m and 44 per cent
The number of transactions touched a high of 996 crore
during the month, higher by 6.6 per cent
from the previous month and 58 per cent
compared to July 2022, according to data provided by the National Payments Corporation of India (NPCI)
The number of monthly transactions crossed the 900-crore
in May 2023
and is expected to cross the 1,000-crore
mark in the current quarter, according to market participants.
The growth in the value of UPI transactions has been over 40 per cent y-o-y
and the growth in the volume has been above 50 per cent y-o-y.
In June, the transactions were 59 per cent higher y-o-y and value of transactions was higher by 45 per cent y-o-y.
Impressive Performance in FY23 :
In FY23, the UPI platform processed a total of 8,376 crore transactions
aggregating to ₹139-lakh crore
, compared with 4,597 crore
transactions worth ₹84-lakh crore in FY22
UPI-led retail digital payments grew at a CAGR
of 50 per cent
in volume and 27 per cent
in value between FY17 and FY22
, per RBI’s annual report for 2022-23.
The central bank’s Digital Payments Index, a measure of the extent of digitisation of payments across the country, rose to 395.57 in March 2023 from 377.46 in September 2022
and 349.30 in March 2022
The Economic Survey for 2022-23 said that UPI transactions, on an average, grew 121 per cent in value and 115 per cent
in volume between FY19
. It further said that India has the highest fintech adoption rate of 87 per cent
compared to the global average of 64 per cent, helping the country to achieve the third place in digital payments behind the US and China.
Future Projections and Dominance of UPI Payments :
UPI transactions are expected to breach 100 crore transactions per day
, per a report by PwC India.
According to the report, UPI payments will dominate the retail digital payments landscape, accounting for 90 per cent
of total transaction volumes over the next 5 years..
Source : The Hindu Businessline