Transactions worth ₹17.40 lakh crore were processed on the Unified Payments Interface (UPI) platform, setting a new record from the previous high of ₹17.16 lakh crore in October.

In percentage terms, the value of transactions was 1.4 per cent higher on month and 46 per cent on year, as per data by the National Payments Corporation of India (NPCI).

Transactions on the UPI network, however, fell slightly by 1.5 per cent to 1,124 crore from 1,141 crore in the previous month. The number of transactions were 54 per cent higher on year.

In October, the value of transactions rose 8.6 per cent and the number of transactions by 8.1 per cent on the back of a surge in consumer spending, led by the onset of the festival season. The trend continued in November, with much of the elevated spending being seen in shopping and e-commerce, and travel transactions, according to market participants.

On-year growth in UPI transactions has consistently remained over 40 per cent for the value of transactions and above 50 per cent for volume of UPI trades in FY24 so far. In FY23, the UPI platform processed 8,376 crore transactions aggregating ₹139 lakh crore, compared with 4,597 crore transactions worth ₹84 lakh crore in FY22. 

UPI transactions steady in Sept, remain above 1,000 crore mark

A shift in consumer behaviour  away from traditional cash transactions, and increased convenience through features such as Credit on UPI, Tap & Pay and Hello UPI is boosting UPI transactions steadily, market experts believe.

In addition, increased digital adoption by merchants through third-party payment applications and rising share of P2M (person-to-merchant) transactions is also supporting growth, they said, with some expecting UPI transactions to breach 2,000 crore in the next 18-24 months.

The share of P2M trades in overall UPI transactions rose to 57.5 per cent in June 2023 from 40.3 per cent in January 2022, and is expected to keep growing, according to Worldline India. During Jan-June, P2M transactions volume grew 119 per cent y-o-y to 2,915 crore and the value rose 72 per cent to ₹19 lakh crore. On the other hand, P2P transaction volumes grew 22 per cent to 2,275 crore, with the value of transactions rising 41 per cent to ₹64 lakh crore.

UPI transactions cross 1,000 crore milestone in August

UPI transactions are expected to breach 100 crore transactions per day by FY27, as per a report by PwC India, which projects UPI to dominate the retail digital payments landscape, accounting for 90 per cent of total transaction volumes over the next five years.