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Transactions using the UPI (Unified Payments Interface) network touched a record high in July 2023, both in terms of volume and value, after witnessing a slight dip in June.
The value of total UPI transactions touched ₹15.34-lakh crore, up 4 per cent m-o-m and 44 per cent y-o-y.
The number of transactions touched a high of 996 crore during the month, higher by 6.6 per cent from the previous month and 58 per cent compared to July 2022, according to data provided by the National Payments Corporation of India (NPCI).
The number of monthly transactions crossed the 900-crore in May 2023 and is expected to cross the 1,000-crore mark in the current quarter, according to market participants.
The growth in the value of UPI transactions has been over 40 per cent y-o-y and the growth in the volume has been above 50 per cent y-o-y.
In June, the transactions were 59 per cent higher y-o-y and value of transactions was higher by 45 per cent y-o-y.
In FY23, the UPI platform processed a total of 8,376 crore transactions aggregating to ₹139-lakh crore, compared with 4,597 crore transactions worth ₹84-lakh crore in FY22.
UPI-led retail digital payments grew at a CAGR of 50 per cent in volume and 27 per cent in value between FY17 and FY22, per RBI’s annual report for 2022-23.
Also read: The rise and rise of UPI
The central bank’s Digital Payments Index, a measure of the extent of digitisation of payments across the country, rose to 395.57 in March 2023 from 377.46 in September 2022 and 349.30 in March 2022.
The Economic Survey for 2022-23 said that UPI transactions, on an average, grew 121 per cent in value and 115 per cent in volume between FY19 and FY22. It further said that India has the highest fintech adoption rate of 87 per cent compared to the global average of 64 per cent, helping the country to achieve the third place in digital payments behind the US and China.
UPI transactions are expected to breach 100 crore transactions per day by FY27, per a report by PwC India.
According to the report, UPI payments will dominate the retail digital payments landscape, accounting for 90 per cent of total transaction volumes over the next five years.
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