According to data released by the National Payments Corporation of India (NPCI), Unified Payments Interface (UPI) transactions reached a record high of 4.5 billion in April 2023. This represents a growth of 11.6% from the previous month and a staggering 78.7% increase from the same period last year.
The surge in UPI transactions can be attributed to several factors, including the increased adoption of digital payments due to the COVID-19 pandemic, the launch of new UPI-based apps and services, and the convenience and security offered by UPI transactions.
In addition to the increase in transaction volume, the value of UPI transactions also reached a new high of Rs. 6.8 lakh crore in April 2023, up by 8.6% from the previous month and 82.4% from the same period last year.
UPI transactions have become the preferred mode of digital payments for Indian consumers and businesses, surpassing other modes such as credit/debit cards and mobile wallets. The ease of use, fast processing time, and low transaction fees make UPI an attractive option for both merchants and customers.
The government’s push towards a digital economy has also played a significant role in the growth of UPI transactions. Initiatives such as the Digital India program and the Jan Dhan Yojana have helped increase financial inclusion, driving the adoption of digital payments across the country.
The NPCI’s data shows that UPI transactions are set to continue their upward trend in the coming months, with the growth of digital payments in India showing no signs of slowing down. The convenience and safety of UPI transactions, coupled with the government’s push towards a digital economy, make UPI a key player in the future of payments in India.