IBEF: November 03, 2021
According to data from the National Payments Corporation of India (NPCI), Unified Payments Interface (UPI) crossed US$ 100 billion in a month for the first time in October, further cementing its position as India’s most popular digital payments system. A mammoth 4.2 billion UPI transactions amounting to Rs. 7.71 lakh crore (US$ 103 billion) were recorded in the month, indicating all-time highs on both counts for the five-year-old payments channel.
The increase in October was driven by the shopping spree marking the start of the festival season and e-commerce sales. With higher vaccination rates and further relaxation of norms, people also started moving out for purchases more often in October.
UPI has surpassed several significant targets since its launch in 2016. It crossed a billion transactions for the first time in October 2019, and the next billion came in under a year. Ever since the start of 2021, monthly transaction value has increased by close to 79% from Rs. 4.31 lakh crore (US$ 57.71 billion) in January. The number of transactions, meanwhile, have soared by > 83% from 230 crore in January.
Meanwhile, other methods of digital payments also logged a sharp surge in October. Immediate Payments Service (IMPS) also touched an all-time high both in terms of number and value of transactions. It recorded 430.67 million transactions worth Rs. 3.70 trillion (US$ 49.54 million) in the month.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.