The Unified Payments Interface (UPI) transactions experienced a slight dip both in terms of volume and value on a month-on-month basis in February 2024, according to the National Payments Corporation of India (NPCI). The payment infrastructure recorded 1,210 Cr transactions in February compared to 1,220 Cr transactions in January. The total value of these transactions also saw a marginal decrease from INR 18.41 Lakh Cr in January to INR 18.28 Lakh Cr in February.
However, UPI transactions exhibited substantial year-on-year growth, with a 61% increase in volume and a 48% surge in transaction value. Despite the month-on-month dip, the year-on-year performance underscores the continued adoption and significance of UPI in India’s digital payments landscape.
NPCI has set an ambitious goal of achieving 2 Bn transactions per day by 2030. As part of this vision, the organization introduced several UPI innovations during the Global Fintech Fest 2023. These innovations include features like access to credit lines, offline NFC-based payment options such as UPI LITE X and Tap & Pay, and conversational payment solutions like Hello! UPI and BillPay Connect.
These product launches are designed to foster inclusivity, resilience, and sustainability in the digital payments ecosystem. The developments align with earlier announcements by the Reserve Bank of India (RBI), which permitted scheduled commercial banks to offer credit lines to customers through the UPI.
In a recent collaboration, PayU joined forces with NPCI to enable merchants to accept digital payments via credit lines, providing users with enhanced flexibility in payment options.
While December 2023 witnessed 1,202 Cr UPI transactions, surpassing the 12 Bn mark for the first time, the overall performance in 2023 was remarkable. The total number of UPI transactions surged almost 60% year-on-year to a record 11,768 Cr in 2023. Simultaneously, the total value of UPI transactions soared over 40% year-on-year to INR 182.84 Lakh Cr.
Leading the UPI app race during the first 11 months of 2023 were Fintech major PhonePe, followed by Google Pay and Paytm, in terms of both total number and value of UPI transactions.
