Unified Payments Interface (UPI) Breaks Records with 18.30 Billion Transactions

Unified Payments Interface (UPI) achieved an impressive 18.30 billion transactions in March, a rise from the 16.11 billion recorded in February. This growth signifies a 13.6% increase month-on-month and a striking 36% year-on-year rise, based on data released by NPCI.

Monthly Transaction Milestone for UPI

With UPI surpassing the 18 billion transaction mark for the first time in a month, the total transaction value in March reached approximately Rs 24.77 lakh crore, which is about 12.80% higher than February’s Rs 21.96 lakh crore.

Average Daily Transactions Show Growth

The average number of daily transactions in March was 590 million, compared to 575 million in February. Additionally, the average daily transaction value increased to Rs 79,910 crore from Rs 78,446 crore the previous month.

Factors Driving UPI Growth

A combination of factors has fuelled this remarkable growth in UPI transactions. The extensive adoption of UPI by merchants across various sectors, along with government initiatives aimed at boosting digital payments, has played a crucial role. Furthermore, the growing consumer awareness and convenience of digital transactions have also contributed significantly.

Government Initiatives to Promote Digital Transactions

Recently, the Indian government has approved a new initiative to incentivise small merchants in adopting digital payments via the BHIM-UPI platform. The ‘Incentive Scheme for Promotion of Low-Value BHIM-UPI Transactions (P2M)’ is set to operate from April 1, 2024, to March 31, 2025, with a dedicated budget of Rs 1,500 crore.

Leading UPI Apps in February 2023

The dominant players in the UPI app market remained unchanged as of February, with PhonePe, Google Pay, and Paytm retaining their positions at the top. Notably, Flipkart’s Super.money made its debut in the top five for the first time.