In January, UPI transactions exceeded 16.99 billion, with a total value over Rs 23.48 lakh crore, marking a record high. UPI accounts for 80 percent of India’s retail payments, indicating substantial growth in the digital payment sector. Currently, UPI supports over 80 applications and 641 banks, enhancing its accessibility for millions of users. The system’s success is affirmed by the trust placed in UPI for low-value transactions. Internationally, UPI is expanding its presence in seven countries, facilitating seamless transactions for Indian nationals abroad.
In January, UPI transactions in India reached an unprecedented milestone, surpassing 16.99 billion with a total value exceeding Rs 23.48 lakh crore. This achievement signifies the highest monthly transaction figures recorded to date and highlights the substantial growth within the digital payments sector for the fiscal year 2023-24.
UPI dominates the digital payment landscape by accounting for 80 percent of retail payments nationwide. The cumulative transaction volume for FY 2023-24 has surpassed 131 billion, with total transaction values exceeding Rs 200 lakh crore.
The Department of Finance attributes UPI’s success to its user-friendly interface and the extensive network of both banking institutions and fintech platforms that support it. Currently, over 80 applications, both bank-affiliated and third-party providers, are integrated into the UPI ecosystem, which comprises 641 operational banks.
For the year 2024-25, up to January, Person-to-Merchant (P2M) transactions comprised 62.35 percent of total UPI volume, while Person-to-Person (P2P) transactions accounted for 37.65 percent. Notably, 86 percent of P2M transactions are of a value up to Rs 500, indicating the high level of trust placed in UPI for low-value payments.
Professor Carlos Montes from Cambridge Business School remarked that UPI serves as a model for other nations aspiring to enhance their payment systems. During his recent visit to India for the NXT event at the Bharat Mandapam, he was informed about the functionality and successes of the UPI initiative.
Furthermore, UPI is making significant strides on the global stage, facilitating seamless international transactions for Indian travelers. To date, UPI functions in over seven countries, including prominent markets such as the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius, thus supporting Indians in making payments abroad.
In summary, the record UPI transactions in January reflect a robust growth trajectory for digital payments in India, driven by the system’s accessibility and wide banking network. As UPI continues to gain ground both domestically and internationally, it underlines the importance of digital payment solutions and sets an example for other countries to follow. Professor Carlos Montes’ commendation signifies the global relevance of UPI. The continued expansion of UPI indicates a promising future for digital payments, empowering users with the confidence to engage in everyday transactions. Overall, UPI’s exceptional performance showcases the potential of digital payment systems to revolutionize the financial landscape.
Original Source: www.ndtv.com
