In yet another record-breaking month, India’s major digital payment platform, the Unified Payments Interface (UPI), completed over Rs 10 trillion in transactions in May, a new high since the platform’s introduction in 2016. Even the 5.95 billion transactions performed on the platform in May set a new milestone for the payments platform.
Despite a high base, the volume of transactions increased by 6.63 percent and the value of transactions increased by 5.91 percent month over month. UPI processed 5.58 billion transactions worth Rs 9.83 trillion in April. When compared year over year, UPI transactions have more than doubled in volume and value, illustrating the digital payments platform’s spectacular ascent over the years.
UPI processed over 46 billion transactions worth over Rs 84.17 trillion in FY22, breaking the $1 trillion barrier. It also handled 22.28 billion transactions worth Rs 41.03 trillion in FY21. In a year’s time, both the volume and value of transactions had doubled.
According to experts, the Covid-19 outbreak has accelerated the country’s use of digital payments in the previous two years. With the exception of a few snags during the first two waves of the pandemic, UPI transactions have been trending upward, matching the broader economic recovery.
The payments platform now aspires to execute one billion transactions each day on its platform. While this milestone can be reached in ten years with no effort, the National Payments Corporation of India (NPCI), the country’s umbrella organisation for digital payments, is hoping to reach it in the next three to five years due to the organic growth in the volume of transactions being handled.
To accomplish the milestone of a billion transactions per day in the next 3–5 years, NPCI would use the three “zero” techniques: zero touch (contactless), zero time (it must be faster than cash), and zero cost to the client.
(With inputs from agencies)
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