UPI transactions in India surpassed 16.99 billion in January 2023, with values exceeding Rs 23.48 lakh crore, marking a new record. The digital payment landscape flourished in FY 2023-24, with UPI contributing 80% of retail payments. The global reach of UPI offers opportunities for cross-border transactions, reinforcing its position as a cornerstone of India’s digital economy.
In January, UPI transactions in India exceeded 16.99 billion, with a total value surpassing Rs 23.48 lakh crore, achieving a new monthly record according to recent government data. The digital payments sector has shown substantial growth for FY 2023-24, with UPI accounting for 80 percent of retail payment activities nationwide, underscoring its essential role in the Indian financial ecosystem.
The total volume of UPI transactions for FY 2023-24 reached over 131 billion, with cumulative values topping Rs 200 lakh crore. The Ministry of Finance attributes UPI’s popularity to its user-friendly interface and the expanding network of banks and fintech apps that facilitate real-time payments. As of January, more than 80 UPI apps and 641 banks are operational within the ecosystem.
For FY 2024-25, as of January, peer-to-merchant (P2M) transactions represented 62.35 percent of total UPI transactions, with peer-to-peer (P2P) transactions accounting for 37.65 percent. Notably, 86 percent of P2M transactions in January were for amounts not exceeding Rs 500, indicating the public’s confidence in utilizing UPI for smaller payments.
Professor Carlos Montes of Cambridge Business School remarked on UPI’s potential as a model for other nations, highlighting the insights gained from India’s experience. Currently, UPI is also expanding its global footprint, enabling convenient cross-border transactions for Indian travelers. It is operational in over seven nations, including vital markets such as the UAE and Singapore.
UPI’s innovative framework continues to enhance India’s digital payment capabilities, demonstrating its efficiency and trustworthiness among consumers for diverse payment requirements.
In summary, UPI has achieved significant milestones in January 2023, setting records with substantial transaction volumes and values. Its role in the digital payments landscape is unprecedented, showcasing growth and the growing acceptance of low-value transactions. The potential for UPI to serve as a blueprint for other countries is also recognized amid its international expansion.
Original Source: www.ndtv.com
