Unified Payment Interface (UPI) transactions hit an all-time high in October, totaling Rs. 17.16 trillion (US$ 210 billion), marking a 9% increase from September’s Rs. 15.8 trillion (US$ 190 billion). In terms of volume, UPI transactions reached a record 11.41 billion, an 8% rise from September’s 10.56 billion.
Data from the National Payments Corporation of India (NPCI) reveals a substantial increase of 56% in volume compared to 7.305 billion in October 2022 and a 42% growth in value compared to last year’s Rs. 12.12 trillion (US$ 150 billion). In August, UPI transactions were 10.58 billion in volume and Rs. 15.76 trillion (US$ 190 billion) in value.
According to Mr. Vivek Iyer, a Partner at Grant Thornton Bharat, the surge in UPI transactions can be attributed to increased digital adoption by both merchants and customers. Third-party UPI-based payment apps have played a significant role in expanding UPI’s user base, and their reward and incentive programs encourage existing users to conduct more transactions via UPI.
In October, 493 million transactions occurred through the Immediate Payment Service (IMPS), a 4% increase from September’s 473 million transactions. The value of these transactions also rose by 6%, from Rs. 5.07 trillion (US$ 61 billion) in September to Rs. 5.38 trillion (US$ 65 billion) in October. Compared to the same period the previous year, this represented a 15% increase in value and a 2% increase in volume.
Fasttag transactions saw a 7% increase in volume in October 2023, with 320 million transactions compared to 299 million in September. The value of these transactions in October was Rs. 5,539 crore (US$ 665.3 million), a 9% increase from September’s Rs. 5,089 crore (US$ 611.3 million). These figures also represented a 13% increase in volume and a 24% increase in value when compared to October of the previous year.
In October, the Aadhaar Enabled Payment System (AePS) recorded a volume of 100 million, slightly less than the 101 million in September, reflecting a 1% decrease in volume. The value of AePS transactions in October was Rs. 25,973 crore (US$ 3.11 billion), marginally less than September’s Rs. 25,984 crore (US$ 3.12 billion). In August, AePS transactions were 107 million, with a value of Rs. 27,500 crore (US$ 3.30 billion). This represents a 17% decrease in value and a 15% decrease in volume compared to the same period in 2022.
Sachin Castelino, Chief Strategy & Transformation Officer of In-Solutions Global, attributes the rise in UPI transactions to factors like increased smartphone penetration, a digitally-savvy population, and the convenience offered by UPI for both consumers and businesses. He notes that this surge in UPI transactions signifies a shift in consumer behavior away from traditional cash transactions towards digital alternatives.
