India's digital economy has witnessed a significant milestone with the National Payments Corporation of India (NPCI) reporting a record-breaking surge in Unified Payments Interface (UPI) transactions in August. The data revealed a 41% year-on-year growth, with UPI transactions reaching an all-time high of 14.96 billion. This robust growth underscores the increasing acceptance and adoption of digital payments among Indian consumers.
The total transaction amount for the month touched Rs 20.61 lakh crore, indicating a 31% YoY growth. This robust growth in UPI transactions underscores the increasing acceptance and adoption of digital payments among Indian consumers. The average daily transaction amount in August stood at a staggering Rs 66,475 crore, further highlighting the scale and reach of UPI.
Interestingly, the value of UPI transactions has remained consistently above Rs 20 lakh crore for four consecutive months. In July, UPI-based transactions clocked Rs 20.64 lakh crore, with the total UPI transaction count standing at 14.44 billion.
The UPI platform is witnessing a steady influx of new users, adding up to 60 lakh new users every month. This growth is primarily driven by the introduction of the RuPay credit card on UPI and its expansion into foreign markets. The NPCI has set an ambitious target of achieving 1 billion UPI transactions per day in the coming years, reflecting its confidence in the platform's potential for further growth.
The UPI platform processed nearly Rs 81 lakh crore transactions in the April-July period this year, marking a 37% increase YoY. This impressive growth rate has propelled UPI past some of the world's leading digital payments platforms. The homegrown digital payments solution processed 3,729.1 transactions per second, a 58% surge over the 2,348 transactions every second registered in 2022.
This puts UPI ahead of global giants like China's Alipay, Paypal, and Brazil's PIX in terms of transaction numbers. India is leading the world in digital transactions, with over 40% of payments being made digitally. UPI is the preferred choice for a majority of these transactions, reflecting its widespread acceptance and trust among Indian consumers.
RBI Governor Shaktikanta Das recently stated that the central bank is focusing on making UPI and RuPay truly global. This statement came in response to the encouraging response received from several jurisdictions. The central bank's focus on globalizing UPI and RuPay is a testament to the success of these platforms and their potential for further growth.
The success of UPI is not just limited to India. The UAE-based Al Maya Supermarket announced the acceptance of UPI-based payments across its outlets in the country. Furthermore, India Stack's flagship offering is now available at the Eiffel Tower in Paris, Galeries Lafayette's flagship store in Haussmann ahead of Paris Olympics, and certain countries in the Middle East.
