January 2023 marked a record for UPI transactions in India, exceeding 16.99 billion with a value surpassing Rs 23.48 lakh crore. UPI continues to dominate the digital payments landscape, accounting for 80 percent of retail payments. The system facilitates both domestic and international transactions, receiving global recognition for its effectiveness.
In January, Unified Payments Interface (UPI) transactions in India achieved a historic milestone, exceeding 16.99 billion transactions and surpassing a value of Rs 23.48 lakh crore, according to recent government figures. This achievement underscores the burgeoning digital payments landscape in India for the fiscal year 2023-24, wherein UPI represents 80 percent of retail transactions nationally.
The total volume of UPI transactions during the fiscal year 2023-24 has exceeded 131 billion with a cumulative value surpassing Rs 200 lakh crore. The convenience of UPI, coupled with an expanding network of banks and fintech platforms, has rendered it the preferred choice for real-time payments for millions of users across India, as per the Ministry of Finance.
As of January, there are over 80 applications for UPI (including bank and third-party apps) and 641 banks operating within the UPI ecosystem. For the period leading up to January in fiscal year 2024-25, Person-to-Merchant (P2M) transactions accounted for 62.35 percent, whereas Person-to-Person (P2P) transactions made up 37.65 percent of the total UPI volume. Notably, 86 percent of P2M transactions were below Rs 500, indicating a high degree of trust in UPI for low-value payments.
Professor Carlos Montes from Cambridge Business School remarked that UPI offers significant lessons for other nations, reflecting on the achievements and operational structure of the system during his visit to India for the NXT event. Professor Montes received a thorough presentation outlining UPI’s functionalities and its success in transforming India’s payment landscape.
Globally, UPI is making strides by facilitating seamless cross-border transactions for Indians traveling abroad. Currently, it operates in more than seven countries, including significant markets such as the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius, thereby enabling Indians to make international payments with ease.
In summary, UPI transactions have reached unprecedented heights, signifying the growing reliance on digital payment methods in India. The system not only enhances domestic retail payments but also supports international transactions for Indians overseas. Its success has drawn attention from international observers, emphasizing the potential for other countries to adopt similar digital payment solutions.
Original Source: www.ndtv.com
