India’s UPI payment system has touched a major milestone with its substantial growth over the past two years. It was only two months back when UPI payment had breached the $1-trillion mark in transaction values for the financial year 2021-22. Now, there’s another record-breaking development that India is witnessing in the digital payment sector.
UPI Transactions crossed the milestone of ₹10 trillion
It is yet another record-breaking month of India’s success in its flagship digital payment platform, Unified Payments Interface (UPI), which has processed transactions worth over Rs 10 trillion in May. It is a record high since the time it was launched in 2016.
Moreover, the number of transactions processed in May is 5.95 billion. This too is a milestone for the payment platform.
Experts believe that UPI has successfully eliminated the hassle of third-party payments.
“UPI has crossed a phenomenal milestone again, this time crossing the 10-trillion mark in transactional values, and 5.95 billion transactions in terms of volume, in May 2022. We are delighted to see the exponential rise of the adoption of UPI, with the pandemic acting as a catalyst in the last two years,” said Dilip Modi, founder of rural fintech company Spice Money.
It is pertinent to note that in March, the Reserve Bank of India (RBI) launched UPI for feature phones. This led to including 400 million users of such phones under the domain of India’s homegrown payments network.
Meanwhile, a report by digital payments company PhonePe and Boston Consulting Group (BCG) said on Thursday that “India’s digital payments market is at an inflection point and is expected to more than triple to $10 trillion by 2026.”The report also suggested that “both global and domestic fintech players have been key drivers of UPI adoption in India among end users.”
India leads the e-payment sector
Witnessing the current growth in UPI payments, it is being speculated that in the next 3-5 years, UPI could process a billion transactions a day. Several initiatives and plans have been brought in to ensure the same. However, the most prominent feature among the e-payment platform’s features is AutoPay. According to industry experts, “the AutoPay feature will be crucial to increasing daily transactions on the platform.”
According to data released by the National Payments Corporation of India (NPCI), earlier in December, 4.56 billion UPI transactions worth Rs 8.27 trillion were recorded. Though November witnessed a marginal dip, UPI transactions in October and likewise in December had reported record high transactions of 4.21 billion, worth Rs 7.71 trillion.
The story of Digital India’s success is a lesson for the other countries that they should never underestimate India and Indians too.