Transactions on the UPI (Unified Payments Interface) network remained steady in September after crossing the milestone of 1,000 crore transactions per month in August.

The number of transactions stood at 1,056 crore, slightly lower than the record high of 1,058 transactions in the previous month, according to data by the National Payments Corporation of India (NPCI). The transactions were 0.2 per cent down on month but higher by 56 per cent on-year.

In terms of value of transactions, the UPI platform continued to see steady growth, setting a new record of transactions worth ₹15.80 lakh crore being processed during the month, which is 0.3 per cent higher on month. The transaction amount was up 41 per cent compared with the year ago period.

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 August, the number of transactions were 61 per cent higher yoy, and value of transactions was 47 per cent higher.

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

The share of person-to-merchant (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’s Digital Payments Report for H1 2023. During Jan-Jun, P2M transactions volume grew 119 per cent y-o-y to 2,915 crore and transaction value rose 72 per cent to Rs 19 lakh crore. On the other hand, P2P transaction volume grew 22 per cent to 2,275 crore with the value of transactions rising 41 per cent to ₹64 lakh crore.

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.