India's UPI transactions reached a record high in October, valued at Rs. 17.2 trillion (US$ 210 billion)

The value of Unified Payment Interface (UPI) transactions reached an all-time high in October to Rs. 17.16 trillion (US$ 210 billion), up 9% from Rs. 15.8 trillion (US$ 190 billion) in September of this year. Additionally, the volume terms as well, transactions reached a record high of 11.41 billion, an increase of 8% from September's 10.56 billion.

Data provided by the National Payments Corporation of India (NPCI) indicates that this is a 56% increase in volume over 7.305 billion in October 2022 and a 42% increase in value over last year's Rs. 12.12 trillion (US$ 150 billion). The volume of UPI was 10.58 billion and Rs. 15.76 trillion (US$ 190 billion) in value terms, in August, respectively.

According to Mr. Vivek Iyer, Partner at Grant Thornton Bharat, “UPI value and volumes are at their peak on account of increased digital adoption at two levels - merchants and customers. The adoption has increased on account of the higher penetration by different UPI-based third-party payment apps that have continually added new customers.” Additionally, the third-party UPI-based payment apps' reward and incentive programmes encourage current users to route more transactions through UPI, he said.   

493 million transactions through the Immediate Payment Service (IMPS) were made in October, representing a 4% increase over 473 million transactions in September. Compared to Rs. 5.07 trillion (US$ 61 billion) in September 2023, this increased in value by 6% over the course of the month to Rs. 5.38 trillion (US$ 65 billion). By comparison, this represented a 15% increase in value and a 2% increase in volume over the same period the previous year. 489 million IMPS transactions with a value of Rs. 5.14 trillion (US$ 62 billion) were recorded in August.

A 7% rise in volume was observed in Fasttag transactions in October 2023, with 320 million transactions compared to 299 million in September. However, compared to September's Rs. 5,089 crore (US$ 611.3 million), the value of these transactions in October was recorded at Rs. 5,539 crore (US$ 665.3 million), a 9% increase. Comparing October's results to the same month the previous year, there was a 13% increase in volume and a 24% increase in value.

The Aadhaar Enabled Payment System (AePS) volume for the reviewed month was 100 million, slightly less than 101 million in September, representing a 1% decrease in volume. Additionally, this was somewhat less in value at Rs. 25,973 crore (US$ 3.11 billion) as opposed to Rs. 25,984 crore (US$ 3.12 billion) in September 2023. In August, it was recorded at Rs. 27,500 crore (US$ 3.30 billion) and 107 million, respectively. This represents a 17% decrease in value and a 15% decline in volume when compared to the same period in 2022.

As per Mr. Sachin Castelino, Chief Strategy & Transformation Officer of In-Solutions Global, “This rise in UPI numbers can be attributed to various factors including increased smartphone penetration, a growing digital-savvy population, and the convenience offered by UPI for both consumers and businesses. Furthermore, this surge in UPI transactions reflects a shift in consumer behaviour, moving away from traditional cash transactions towards digital alternatives.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.