In January, UPI transactions in India hit 16.99 billion, with a transaction value of Rs 23.48 lakh crore, marking the highest monthly figures recorded. UPI’s growth is fueled by its ease of use, with over 80 apps and 641 banks participating. In FY 2023-24, P2M and P2P transaction contributions highlight the system’s reliance for everyday payments, with increasing international usage being noted as well.
UPI transactions in India reached a record-breaking 16.99 billion in January, with a total transaction value exceeding Rs 23.48 lakh crore. This milestone reflects a significant growth in the digital payments landscape, where UPI plays a pivotal role, accounting for 80% of retail payments in India.
For the financial year 2023-24, the total UPI transaction volume exceeded 131 billion, and the total value surpassed Rs 200 lakh crore. This growth can be attributed to UPI’s accessibility and its extensive network of participating banks and fintech platforms. Millions of users across India prefer UPI for real-time payments, as noted by the Ministry of Finance.
As of January, more than 80 UPI applications, including bank and third-party providers, are active, with 641 banks integrated into the UPI ecosystem. In FY24-25 (up until January), Person-to-Merchant (P2M) transactions accounted for 62.35% of all UPI transactions, while Person-to-Person (P2P) transactions made up 37.65%. Notably, 86% of P2M transactions are valued at Rs 500 or less, highlighting the trust users have in UPI for low-value payments.
Professor Carlos Montes from Cambridge Business School acknowledged that UPI’s successful model offers insights for other countries. During his visit to India, he learned about UPI’s operations and achievements, reinforcing its importance in global digital payment systems.
UPI is also gaining international traction, now operational in over seven countries, including the UAE, Singapore, and France, facilitating seamless transactions for Indians abroad. This international expansion demonstrates UPI’s versatility in adapting to cross-border payment contexts.
The record-breaking growth of UPI transactions in India underscores its dominance in the digital payments sector, primarily driven by user-friendly functionalities and an expanding network of banks and fintech. With increasing trust in UPI for low-value transactions and its budding international presence, UPI is setting a benchmark for digital payment systems worldwide.
Original Source: www.ndtv.com
