Updated January 4th, 2024 at 14:07 IST
UPI payments cross 182 lakh crore in transaction value in 2023
Monthly transactions on UPI witnessed significant uptick of over 49 per cent throughout the year, from January to December 2023 as per NPCI data.
Scanning records in payment: The Unified Payments Interface (UPI) saw 118 billion transactions in 2023, marking a 60 per cent growth compared to 74 billion transactions in the same period last year.
The value of the transactions rose to Rs 182 lakh crore in the entire year as per the data. In December 2023 itself, UPI payments in India crossed 12.02 billion transactions, having processed payments worth Rs 18.23 lakh crore during the month.
Monthly transactions on UPI witnessed a significant uptick of over 49 per cent throughout the year, from January to December 2023 as per the NPCI data shared on their platform.
Tech stack enabling Digital Public Infrastructure
The technology stack architecture of NPCI - which runs the mobile payments system - allows for infinite scalability.
The network of digital stacks, which act as foundations for multiple services such as MSME onboarding in the pattern of ONDC (Open Network of Digital Commerce) of DPIIT under the Commerce Ministry, is an important aspect of making Digital Public Infrastructure accessible to all.
Various players like Paytm, PhonePe and Google Pay have announced UPI Lite for smaller transactions, making the scan-to-pay process simpler.
Commenting on the milestone, Sameer Aggarwal, CEO and Founder, Revfin said the milestone represents more than just numerical progress; it stands as a pivotal step toward advancing financial inclusivity in India.
“The convenience of digitally managing payments such as loans also streamlines financial processes and aligns seamlessly with the Digital India initiative,” he added.
Soaring Transactions in Holidays
During the holiday season, UPI transactions stood at around 387 million each day, as per the NPCI data, and is likely to surpass MasterCard’s daily transaction volume of 440 million this year.
Notably, the world's largest card network Visa processes an average of 750 million daily transactions.
There are more than 300 million UPI payment users in the country.
Not just an Indian phenomenon
UPI was launched in 2016 as an instant payment system developed by the National Payments Corporation of India, and works on smartphones and mobile devices for instant fund transfer between bank accounts and wallets, through a mobile number or username registered with the bank and on the UPI platform.
The payments infrastructure is fast finding a market abroad, with India having shared its UPI technology with France, Australia, Singapore, UAE, Saudi Arabia, Oman, Nepal, Bhutan, Sri Lanka and other such nations.
Paytm CEO Vijay Shekhar Sharma has spoken about taking the technology stack abroad, as “a responsibility of startups to expand beyond India.” It also entered a partnership with Open Network for Digital Commerce (ONDC) as an e-commerce platform for groceries, electronics and other products.
Published January 4th, 2024 at 14:07 IST