Transactions undertaken on the UPI (Unified Payments Interface) network dipped 0.9 per cent in June, both in terms of volumes and value of transactions, after touching a record high in May.

UPI transactions fell to ₹14.75 lakh crore in June, with 933 crore transactions being processed during the month, according to National Payments Corporation of India (NPCI) data. The number of transactions was higher by 59 per cent on the year, and the value of transactions was 45 per cent higher compared with June 2022.

In the first ten days of June, UPI trades had crossed 320 crore transactions and were projected to cross 1,000 crore in June, as per reports. However, momentum slowed down in the second half of the month.

In May, UPI transactions had crossed the benchmark of 900 crore per month, with a record high of 941 crore transactions worth ₹14.89 lakh crore being processed.

This is the first time the number of transactions has fallen since February, and the value of transactions has declined since April 2023. In FY23, the UPI platform had processed 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.

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