Transactions undertaken on the UPI (Unified Payments Interface) network, touched a record high of ₹14.89 lakh crore in May, also crossing the milestone of 900 crore transactions per month.

UPI transactions were higher by 6 per cent on month, both in terms of value and volumes. A total of 941 crore transactions were processed during the month, according to data by the National Payments Corporation of India (NPCI).

The number of transactions was higher by 58 per cent on year, and the value of transactions was 43 per cent higher compared with May 2022.

“Transactions worth around ₹3.96 lakh crore happened in the last ten days of May. This surge in UPI transactions highlights the growing preference and demand for online and contactless payments among consumers,” said Anup Nayar, CEO – Domestic of payment aggregator firm In-Solutions Global.

Technological infrastructure

Ecosystem players should focus on enhancing their technological infrastructure, providing a seamless user experience, and promoting the benefits of UPI transactions, he added.

While the number of transactions have been rising steadily, barring in the shorter month of February, in terms of the value of transactions the previous high was seen in March when the network saw transactions worth ₹14.10-lakh crore.

In FY23, the UPI platform had processed a total of 8,376 crore transactions aggregating ₹139-lakh crore, compared with 4,597 crore transactions worth ₹84-lakh crore in FY22.

UPI-led retail digital payments grew at a compounded annual growth rate (CAGR) of 50 per cent in terms of volume and 27 per cent in terms of value, between 2016-17 and 2021-22, the RBI said recently in its annual report for 2022-23.