The Unified Payments Interface (UPI) continued its strong growth trajectory in September 2023, processing 1,056 Cr transactions worth INR 15.8 Lakh Cr. This is the second consecutive month that UPI has crossed the 1,000 Cr transaction threshold.
The number of UPI transactions grew by 3% month-on-month (MoM), while the transacted amount grew by 4% MoM. This growth was driven by several factors, including:
- The increasing popularity of digital payments: According to a recent report by the National Payments Corporation of India (NPCI), digital payments in India grew by 50% year-on-year in the first half of 2023.
- The launch of new features on UPI platforms: UPI platforms have been launching new features regularly to make the payment experience more convenient and secure. For example, some platforms now allow users to split bills, send money to multiple recipients at once, and pay for recurring expenses.
- The growing acceptance of UPI by merchants across the country: UPI is now accepted by millions of merchants across India, making it easy for users to pay for goods and services using their mobile phones.
The continued growth of UPI is good news for the Indian economy. It is helping to drive financial inclusion and make it easier for people to participate in the digital economy. It is also helping to reduce the reliance on cash, which can lead to improved efficiency and transparency in the economy.
The Indian government is also supportive of the growth of UPI. In recent years, the government has taken several steps to promote digital payments, including making it mandatory for merchants to accept UPI payments and offering financial incentives to users who switch to digital payments.
The future of digital payments in India looks bright. UPI is leading the way in making digital payments more convenient, secure, and accessible. It is expected to continue to grow in the coming years, as more and more people adopt digital payments.
The NPCI is also ambitiously targeting 100 Bn monthly transactions shortly. This is a significant milestone, but it is achievable given the current growth trajectory of UPI.
Globally, UPI has also been expanding rapidly. It is now available in multiple countries, including France, Bhutan, Nepal, UAE, and Canada. India is also in talks with New Zealand and several South American and African countries to introduce UPI in those nations.
The global expansion of UPI is a testament to its popularity and success in India. It is a scalable and flexible payment system that can be adapted to meet the needs of different countries.
UPI is poised to play a major role in the future of digital payments globally. It is a convenient, secure, and accessible payment system that is helping to drive financial inclusion and economic growth.