India’s UPI transactions exceeded 16.99 billion and Rs 23.48 lakh crore in January 2024, marking a record for a single month. UPI accounts for 80 percent of retail payments, with over 131 billion transactions valued at over Rs 200 lakh crore for FY2023-24. Its broad adoption emphasizes low-value payments’ ease and reliance. UPI is also expanding internationally with services in seven countries, aiding Indians abroad.
In January 2024, UPI transactions in India reached an unprecedented landmark, exceeding 16.99 billion transactions with a total value of over Rs 23.48 lakh crore, according to recent government data. This milestone marks the highest monthly transaction volume recorded thus far. The digital payments landscape is surging, with UPI serving as the backbone, accounting for 80 percent of all retail payments in India.
During the financial year 2023-24, the total transaction volume surpassed 131 billion, and transaction value exceeded Rs 200 lakh crore. The Ministry of Finance highlighted that the user-friendly nature of UPI, coupled with the expansive network of participating banks and fintech firms, has solidified its status as the preferred method for real-time payments among millions of citizens.
Currently, the UPI ecosystem supports over 80 apps and boasts participation from 641 banks, facilitating various transactions. Notably, of the UPI transaction volume for FY24-25 (up to January), Person-to-Merchant (P2M) transactions constituted 62.35 percent, with the remaining 37.65 percent being Person-to-Person (P2P) transactions. This trend reflects the trust citizens place in UPI for low-value payments, with 86 percent of P2M transactions valued under Rs 500.
Professor Carlos Montes from Cambridge Business School commented on UPI’s potential as a model for other countries, emphasizing the international recognition of its success. While visiting India for the NXT event, he received insights into UPI’s operations and achievements, highlighting its vital role in India’s digital economy and sharing its operational successes.
Furthermore, UPI is expanding its global footprint, facilitating seamless international payments for Indians abroad. UPI services are operational in over seven countries, including significant markets such as the UAE and Singapore, allowing Indians traveling overseas to complete transactions effortlessly.
This remarkable growth in UPI transactions showcases the profound impact of digital payments in India, signifying a transformative leap in the nation’s financial ecosystem.
In summary, the recent data reveals a significant upsurge in UPI transactions in India, reaching record levels in January 2024. UPI remains integral to India’s digital payment landscape, facilitating vast transaction volumes and values while demonstrating immense trust among users for low-value payments. Additionally, UPI’s growing international presence illustrates its potential to influence global digital payment systems.
Original Source: www.ndtv.com
