Monday, July 15, 2024
HomeTrendsRecord-Breaking Performance: UPI Monthly Transaction Volumes Approach 10 Billion in July

Record-Breaking Performance: UPI Monthly Transaction Volumes Approach 10 Billion in July

Record-Breaking Performance: UPI Monthly Transaction Volumes Approach 10 Billion in July

In July, the Unified Payments Interface (UPI) achieved a significant milestone by recording close to 10 billion transactions, totaling Rs 15.34 lakh crore (Rs 15.34 trillion) in value. This figure represents a slight increase compared to the previous month’s performance. The data, released by the National Payments Corporation of India (NPCI), highlights the continued growth and adoption of UPI since its public launch in April 2016.

This new record demonstrates the growing popularity and acceptance of UPI as a preferred mode of digital payments in India. UPI has emerged as a convenient and secure way for individuals and businesses to conduct transactions, and its increasing usage reflects the confidence and trust users have in the system.

As UPI continues to evolve and expand its services, it is expected to play a crucial role in driving India’s digital payment ecosystem, promoting financial inclusion, and contributing to the country’s digital transformation journey.

In June, the Unified Payments Interface (UPI) experienced a minor decline in transactions, with the total value dropping from Rs 14.89 trillion in May to Rs 14.75 trillion. Similarly, there was a slight decrease in transaction volume, with the number of transactions falling from 9.41 billion in May to 9.34 billion in June.

UPI- Towards a Cashless Future! - Finance Buddha Blog | Enlighten Your ...

It is not uncommon for digital payment systems to witness fluctuations in transaction volumes on a month-to-month basis. Various factors, such as seasonality, consumer behavior, and economic conditions, can influence the usage patterns of digital payment platforms.

Despite the marginal drop in June, it has demonstrated overall growth and resilience, consistently setting new records and achieving significant transaction volumes. The recent data showing close to 10 billion transactions and Rs 15.34 lakh crore in July further reinforces UPI’s role as a vital component of India’s digital payments landscape.

As of June, PhonePe was the leading player in the Unified Payments Interface (UPI) ecosystem, holding more than 47% market share in terms of transaction volume. Google Pay and Paytm followed closely, with 35% and 13% market share, respectively.

Interestingly, the fintech platform CRED, which introduced UPI peer-to-peer (P2P) payments in April, climbed to the fourth position in the UPI market rankings. Amazon Pay held the fifth position in terms of market share.

While the data for July is yet to be released, it is anticipated that the top three players (PhonePe, Google Pay, and Paytm) will maintain their positions at the forefront of the UPI market, given their established presence and user base.

Paytm's valuation increased by 16 percent ahead of IPO - TechStory

The competition in the UPI space remains intense, with various players vying for a larger share of the rapidly growing digital payments market in India. As more consumers and businesses embrace digital transactions, the UPI ecosystem continues to evolve, and new players may enter the market to offer innovative payment solutions and services.

It is noteworthy that peer-to-merchant (P2M) payments overtook peer-to-peer (P2P) payments in terms of share in August of the previous year. Since then, P2M payments have consistently maintained a lead over P2P payments up until June of this year. Unfortunately, data for the month of July is not available at the moment, so it is unclear whether the trend of P2M payments dominating over P2P payments continued in that specific month.

The shift towards P2M payments indicates a growing trend of consumers using digital payment platforms for making transactions at merchant establishments, such as retail stores, restaurants, and online shops. This shift in consumer behavior is a reflection of the increasing adoption of digital payment methods and the convenience they offer in day-to-day transactions.

The continued rise of P2M payments in the UPI ecosystem underscores the role of digital payment platforms in facilitating cashless transactions and driving the digital transformation of India’s economy. As the UPI network and digital payment infrastructure continue to evolve, the trend of P2M payments surpassing P2P payments is likely to have significant implications for the overall digital payments landscape in India.

Dilip Asbe, the chief of National Payments Corporation of India (NPCI), has expressed optimism about the growth potential of the Unified Payments Interface (UPI). According to him, UPI has achieved only 10% penetration so far, indicating that there is a vast scope for expansion. Asbe believes that it has the ability to grow tenfold in the coming years, showcasing the tremendous opportunities for digital payments adoption in India.

Courses Cart - VJ Exports Mastery Courses and Services

Furthermore, Asbe predicted that the daily transaction volume could reach 1 billion in the next three years or by 2025. This projection reflects the expected surge in digital transactions as more consumers and merchants embrace the convenience and benefits of digital payment systems like UPI.

Asbe’s positive outlook on UPI’s growth aligns with the broader trend of increasing digitalization and adoption of cashless payment methods in India. With ongoing technological advancements, greater awareness, and government initiatives promoting digital payments, UPI is likely to play a pivotal role in shaping the future of the country’s payment ecosystem. The potential for the platform to cater to a billion transactions daily underscores its significance as a key enabler of the digital economy in India.

The expansion of Unified Payments Interface (UPI) to global markets is part of the Indian government’s efforts to enhance tourism and offer convenience to Indian citizens traveling abroad. The National Payments Corporation of India (NPCI) has already introduced it in several countries, including Bhutan, Nepal, Singapore, and France. These initiatives have allowed Indian travelers to make digital payments seamlessly while abroad, reducing the reliance on traditional payment methods and promoting cashless transactions.

Building on the success of UPI’s international presence in these countries, NPCI is now planning to launch in North America and the Middle East. The expansion to these regions would further extend the reach of UPI and provide Indian travelers with a reliable and user-friendly payment solution when visiting North America and the Middle Eastern countries.

Welcome To Spandan Samaj Seva Samiti, Khandwa (MP)

The move to take UPI global aligns with India’s push towards digitalization and its goal to position it as a popular and widely accepted payment system globally. By facilitating cross-border digital transactions, it can significantly benefit tourists, businesses, and travelers from India, making international trips more convenient and seamless in terms of financial transactions.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

- Advertisment -

Most Popular

Recent Comments