UPI transaction volume tops 1.7 bn in Sept, crosses Rs 3 trn by value

Unified Payment Interface (UPI), the flagship payments platform of National Payments Corporation of India (NPCI), has touched a new high in the month of September, with the number of transactions breaching the 1.7 billion mark as of September 29 and the value of transactions crossing the Rs 3 trillion mark, according to data released by the Reserve Bank of India (RBI).

The coronavirus (Covid-19) pandemic has resulted in massive adoption of UPI in the offline and online segments. In the offline segment, people are shunning cash and adopting UPI. Adaption of UPI, especially at the merchant level, has been significant. But, UPI is fundamentally for low ticket size transactions and the average ticket size on the UPI is not more than Rs 200-300.

Last month, UPI clocked 1.61 billion transactions. In value terms, the transactions were worth Rs 2.98 trillion. Experts say, UPI transactions will pick up further during the festive season that is around the corner. So, by December, UPI can hit 2 billion transactions in a month and by March 2021, it should reach 2.15 billion transactions in a month.

Despite the economy de-growing, digital transactions have managed to increase their share. Experts say, they are seeing transactions moving from the card segment to UPI and other digital payment platforms. E-commerce platforms are also contributing massively in driving up digital payment transactions, especially UPI.

 

According to industry insiders, UPI has been growing in the P2P and person to merchant segments. Although, UPI has grown very fast in terms of numbers, the transaction per value of UPI is still very low. Credit cards are still holding up in the higher value segment where the transaction payment value is higher.

Digital payment transactions have rebounded from the Covid-19 shock and have reached pre-covid levels, despite the massive contraction in Indian economy owing to the lockdown imposed in the initial months to contain the spread of the virus. Immediate Payment Service (IMPS), as of September 29, clocked a transaction count of 268.49 million worth Rs 2.37 trillion. Bharat Bill Payment System clocked a transaction count of 22.45 million worth Rs 3,783.02 crore.

According to experts, the Covid-19 pandemic has done more to digitise payments in India than what demonetisation achieved, and the digital future is here to stay. Consumers are increasingly adopting digital payment platforms because over fears that usage of cash might result in them contracting the virus. The most encouraging thing that the pandemic has brought about is the adoption of digital payments in offline mode as consumers are increasingly switching to pay via digital payment methods in grocery shops and other places where cash ruled the roost.

UPI data
	Volume (billion)	Value ( in Rs trillion)
January	1.3	2.16
February	1.32	2.22
March	1.24	2.06
April	0.99	1.51
May	1.23	2.18
June	1.33	2.61
July	1.49	2.9
August	1.61	2.98
September (Upto 29)	1.73	3.14