The Unified Payments Interface (UPI) has become the world’s leading alternative payment method (APM). From April to July 2024, UPI processed transactions worth US$ 964 billion (Rs. 80.8 lakh crore), marking a significant 37% increase from the previous year. In 2023, UPI handled 3,729.1 transactions per second, totaling 117.6 billion transactions, according to Paysecure. This impressive volume surpasses global payment giants like China’s Alipay, PayPal, and Brazil’s PIX. The transaction value of UPI reached US$ 2.19 trillion in 2023, and July 2024 saw a record monthly transaction total of US$ 247 billion (Rs. 20.64 lakh crore).
UPI’s growth has been fueled by the integration of credit cards, prepaid wallets, and vouchers, expanding its user base from 300 million to over 400 million. This surge is attributed to greater interoperability and the potential for expansion among smartphone users. Rahul Jain, CFO of NTT Data Payments Services India, forecasts that UPI’s value and volume could double within the next 2-3 years, driven by new products and the increasing adoption among smartphone users.
Globally, alternative payment methods like Skrill, PIX, and Alipay are gaining popularity, reflecting a broader trend towards real-time payment systems. Developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI), UPI has significantly enhanced financial accessibility since its launch in 2016.
