The Unified Payments Interface (UPI) has seen a significant surge in its transaction value and volume in September. The data released by NPCI on Tuesday revealed that UPI transactions reached a remarkable value of Rs 20.64 lakh crore, marking a 31% year-on-year increase. This growth is a testament to the increasing adoption of digital payment methods in the country.
The number of transactions also saw a substantial rise, with a total of 15.04 billion transactions recorded in September. This represents a 42% growth compared to the same period last year. The average daily transaction count stood at 501 million, up from 483 million in August. The average daily transaction amount also saw an increase, reaching Rs 68,800 crore from Rs 66,475 crore in August.
The consistent growth in UPI transactions over the past five months, with the value of transactions remaining above Rs 20 lakh crore, indicates the robustness of the digital payment infrastructure in India. This trend is not only a reflection of the increasing comfort and trust of consumers in digital transactions but also the effectiveness of the government's push towards a digital economy.
In addition to UPI, other digital payment systems also witnessed significant growth in September. The Aadhaar Enabled Payment System (AePS), a type of payment system that allows financial transactions at micro-ATMs through the business correspondent of any bank using the Aadhaar authentication, recorded 100 million transactions. The transaction amount stood at Rs 24,143 crore.
The Immediate Payment Service (IMPS), a real-time interbank electronic funds transfer system in India, also saw a surge in its transactions. The total value of IMPS-based fund transfers stood at 5.65 lakh crore, marking an 11% YoY growth. The average daily transaction count was 14 million, with Rs 18,841 crore as the daily transaction amount.
The National Electronic Toll Collection (NETC) FASTag system, which facilitates electronic toll collection at toll plazas, recorded 318 million transactions in September. The total amount collected through FASTag stood at Rs 5,620 crore, a 10% YoY growth. The average daily volumes were 11 million, with Rs 187 crore as the daily collection.
These figures underscore the growing preference for digital transactions in the country. Sunil Rongala, Senior Vice President, Head – Strategy, Innovation, and Analytics at Worldline India, noted the significance of these statistics. He pointed out that while the value of transactions remained constant at Rs 20.64 lakh crore from July to September, the number of transactions jumped from 14.44 billion to 15.04 billion. This indicates the increasing use of UPI for micro transactions, further highlighting its role as an integral part of digital transactions in India.
The growth in UPI transactions volume is primarily driven by person to merchant (P2M) transactions. This suggests that more and more businesses are adopting UPI as a preferred mode of payment, further fueling its growth.
The surge in UPI transactions is reminiscent of similar trends observed in the past. For instance, in 2019, UPI transactions crossed the Rs 1 lakh crore mark for the first time, indicating a growing preference for this mode of payment. The current growth trend suggests that UPI is set to play an even more significant role in India's journey towards becoming a digital economy.
