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The Unified Payments Interface (UPI) has set a new record with 14.96 billion transactions in August 2024, marking a significant year-on-year (YoY) growth of 41%, according to data from the National Payments Corporation of India (NPCI).The total transaction value for the same period reached ₹20.61 lakh crore, demonstrating a substantial YoY increase of 31%.This surge in UPI usage underscores the growing adoption and trust in digital payment platforms among Indian consumers.
High transaction value for four consecutive months
The NPCI data also revealed that the average daily transaction volume in August was 483 million, with an average daily transaction value of ₹66,475 crore.Interestingly, the value of UPI transactions has consistently remained above ₹20 lakh crore for four consecutive months now.In July 2024 alone, UPI-based transactions amounted to ₹20.64 lakh crore with a total count of 14.44 billion transactions.The average daily transaction volume was 466 million, with an average transaction value of ₹66,590 crore per day.
User base expands by 60 lakh monthly
UPI is now adding approximately 60 lakh new users every month, a growth largely driven by the introduction of the RuPay credit card on UPI and its expansion into foreign markets.The NPCI has set an ambitious goal of achieving one billion UPI transactions per day in the future.Between April and July this year, UPI processed nearly ₹81 lakh crore transactions, marking a staggering YoY increase of 37%.
Global digital payment platforms left behind
As per Paysecure, a global payments hub, UPI processed 3,729.1 transactions per second in the April-July period this year.This represents a significant 58% increase from the 2,348 transactions per second recorded in 2022.With these figures, UPI has surpassed leading global digital payment platforms like China’s Alipay and Brazil’s PIX in terms of transaction volume.
UPI dominates India’s digital payment landscape
India is leading the world in digital transactions, with more than 40% of payments being made digitally. UPI is being used for a majority of these transactions.Dilip Asbe, CEO of NPCI, believes that UPI has the potential to reach 100 billion transactions in the next 10-15 years, backed by credit growth.This projection aligns with a PwC India report that predicts a threefold increase in UPI transactions from 131 billion in FY2023-24 to 439 billion by FY2028-29.
RBI’s global expansion plans for UPI and RuPay
RBI Governor Shaktikanta Das recently stated that the central bank is now focusing on making “UPI and RuPay truly global” based on encouraging response received from several jurisdictions.UPI is being used for making payments not only in India but also in various other countries such as UAE and Malaysia.The RBI is focused on initiatives including deploying UPI-like infrastructure abroad, enabling QR code-based UPI payment systems at international merchants, and linking UPI with other countries’ Fast Payment Systems.
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