Winning Bizness Desk
Mumbai. Unified Payments Interface (UPI) continues to dominate India's digital payment landscape, setting new records in August 2024. The month witnessed an unprecedented 1,496 crore transactions, with a total value of ₹20.61 lakh crore, according to data released by the National Payments Corporation of India (NPCI). This surge represents a significant 41% increase in the number of transactions compared to the same period last year. In August 2023, UPI processed 1,059 crore transactions, amounting to ₹15.77 lakh crore. The year-on-year growth in transaction value stands at approximately 31%, underscoring the increasing reliance on UPI as the preferred payment method for millions of Indians. On a daily basis, UPI facilitated an average of 48.3 crore transactions in August 2024, with an average daily transaction value of ₹66,475 crore. This consistent growth highlights the platform's role in driving the adoption of cashless payments across the country.
Total transaction value saw a slight dip of 0.15%
Interestingly, when comparing the month-on-month data, there has been a modest increase in the number of transactions by 3.60% from July 2024. However, the total transaction value saw a slight dip of 0.15%. In July, UPI recorded 1,444 crore transactions worth ₹20.64 lakh crore. The marginal decline in the transaction value suggests a possible shift in consumer spending patterns, even as the overall volume of transactions continues to rise. The growth of UPI transactions can be attributed to several factors, including the government's push for digital payments, the widespread adoption of smartphones, and the user-friendly nature of UPI-enabled apps. The zero-charge framework for UPI transactions, implemented on January 1, 2020, has also played a pivotal role in its mass adoption by making digital payments more accessible to all segments of society.
UPI system has outpaced RTGS and NEFT
The UPI system, regulated by NPCI, has outpaced traditional payment methods such as Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT), which are managed by the Reserve Bank of India (RBI). Other NPCI-operated payment systems like Immediate Payment Service (IMPS) and RuPay have also contributed to the digital payment revolution, but UPI remains the leader in terms of transaction volume and value. As UPI continues to break records, its success reflects the ongoing transformation of India’s financial ecosystem towards a more digital and inclusive economy.
