UPI Breaks All Records in April, Total 5.58 Billion Transactions

UPI Breaks All Records in April, Total 5.58 Billion Transactions

Sushmita Goswami | May 2, 2022 |

UPI Breaks All Records in April, Total 5.58 Billion Transactions

UPI Breaks All Records in April, Total 5.58 Billion Transactions

The Unified Payments Interface (UPI), India’s premier digital payments network, experienced the largest number of transactions ever in April 2022, with 5.58 billion transactions totaling Rs 9.83 trillion.

For the first time in March, UPI exceeded 5 billion transactions in a single month. When compared to March, the volume of transactions increased by 3.33 percent, while the value of transactions increased by 2.36 percent.

UPI processed 5.4 billion transactions worth Rs 9.6 trillion in March.

Year over year (YoY), however, the volume of transactions climbed by 111% and the value of transactions increased by nearly 100%.

UPI processed 2.64 billion transactions worth Rs 4.93 trillion in April 2021.

Transactions had fallen marginally in FY22 due to the second wave of Covid. UPI transactions, on the other hand, have been steadily increasing since then, matching the broader economic recovery.

In reality, the pandemic has accelerated the country’s embrace of digital payments in the previous two years.

UPI processed over 46 billion transactions worth over Rs 84.17 trillion in FY22, surpassing the $1-trillion barrier.

It also handled 22.28 billion transactions worth Rs 41.03 trillion in FY21. As a result, both the volume and value of transactions doubled in a year, demonstrating the explosive growth of digital payments. Furthermore, since the outbreak, UPI’s transaction volume and value have increased by nearly 350%.

UPI was once thought to be the primary payment method for peer-to-peer (P2P) transactions. With over 56% market share in volume terms in 2021, it has already emerged as the dominant mechanism for even peer-to-merchant (P2M) transactions.

In October 2019, over three years after its inception in 2016, UPI surpassed one billion transactions for the first time.

The second billion came in less than a year, as UPI conducted more than 2 billion transactions in October 2020.

UPI processed 3 billion transactions during the next ten months. And the payments platform went from 3 billion to 4 billion transactions per month in just three months.

In just six months, the additional one billion transactions were completed.

UPI’s next goal is to conduct a billion transactions per day within the next three years. The AutoPay feature, according to analysts, will be the next boost to the already growing UPI transactions. Since the Reserve Bank of India’s (RBI’s) new instructions on e-mandates disrupted periodic payments through cards, this has seen widespread usage.

UPI’s AutoPay feature enables for up to Rs 5,000 in recurring payments. Experts predict that recent moves by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) would improve transaction volume and value in the coming days.

The “on-device” wallet option for UPI users, dubbed “UPI Lite,” has been launched by NCPI. It will make small-ticket transactions easier.

This “on-device” wallet functionality, according to NPCI, will go a long way toward reaching the company’s pipe dream of processing one billion transactions per day in the next 3-5 years.

In addition, the RBI, in collaboration with the National Payments Corporation of India (NPCI), has introduced the UPI123Pay service for 400 million feature phones. This will allow transactions to be made using feature phones that do not have access to the internet.

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