Synopsis
UPI has become a leading force in India's financial inclusion, with significant growth in digital transactions and merchant adoption, bolstering cross-border payments.Key Takeaways
- UPI accounts for 84% of all digital transactions in India.
- 16 billion monthly transactions with a projected growth of 3x by 2030.
- UPI's merchant-to-consumer segment is growing at 67% YoY.
- UPI's share of digital payments surged from 34% in 2019 to over 83% in 2024.
- Transaction volume increased from 375 crore in 2018 to 17,221 crore in 2024.
New Delhi, Feb 22 (NationPress) As the landscape of digital payments evolves, nearly four out of five transactions in the country were executed using the Unified Payments Interface (UPI) in FY24. UPI has established itself as a pivotal force fostering financial inclusion, enhancing merchant adoption, and facilitating cross-border transactions.
As reported by a recent industry analysis, UPI now accounts for 84 percent of all digital transactions in India.
This report from The Digital Fifth, a fintech consulting and advisory firm, indicates that UPI embodies more than a mere payment mechanism; it represents a comprehensive financial ecosystem that is redefining India’s digital-centric economy.
According to Sameer Singh Jaini, Founder and CEO of The Digital Fifth, "With UPI processing 16 billion transactions monthly and expected to triple by the end of 2030, the importance of a robust, high-resilience switching infrastructure cannot be overstated.”
Jaini noted that real-time fraud detection, cloud-native architecture, and scalable, dual-core switches have shifted from optional to essential for facilitating seamless, secure, and fail-proof digital payments as India moves towards a fully cashless, globally interconnected economy.
UPI transactions have skyrocketed, quadrupling from 2021 to 2024, culminating in 172 billion transactions annually. It now surpasses card-based and wallet transactions, dominating the digital payment space.
With over 30 million merchants registered on UPI, the merchant-to-consumer (P2M) segment is witnessing a remarkable 67 percent year-on-year growth, outpacing peer-to-peer (P2P) transactions and signaling UPI’s evolution into the primary retail payment option, as highlighted in the report.
The RBI reported a year-on-year (YoY) increase of 11.1 percent in digital payments across India as of September 2024.
The report further reveals that UPI's share of the nation’s digital payments has surged from 34 percent in 2019 to an impressive over 83 percent in 2024, achieving a remarkable CAGR (cumulative average growth rate) of 74 percent over the past five years.
On a broader scale, the volume of UPI transactions rose from 375 crore in 2018 to 17,221 crore in 2024, while the total transaction value jumped from Rs 5.86 lakh crore in 2018 to Rs 246.83 lakh crore in 2024.
