India's UPI transactions scale new high in Oct; clock Rs 17.2 trn in value

According to data shared by the NPCI, this is 56 per cent higher in volume terms compared to 7.30 billion in October 2022 and 42 per cent higher in value terms compared to Rs 12.12 trillion last year

Unified Payments Interface (UPI) transactions saw their highest-ever value in October, touching Rs 17.16 trillion, up 9 per cent compared to Rs 15.8 trillion in September.

In volume terms, too, transactions touched a new high at 11.41 billion, up 8 per cent compared to 10.56 billion in September.

According to data shared by the National Payments Corporation of India (NPCI), this is 56 per cent higher in volume terms compared to 7.30 billion in October 2022 and 42 per cent higher in value terms compared to Rs 12.12 trillion last year. 

In August, UPI numbers were 10.58 billion and Rs 15.76 trillion, in volume and value, respectively.

“UPI value and volumes are at their peak on account of increased digital adoption at two levels — merchants and customers.

The adoption has increased on account of the higher penetration by different UPI-based third-party payment apps that have continually added new customers.

“The rewards and incentive programmes offered by third party UPI-based payment apps also entice existing customers to route more transactions through UPI,” said Vivek Iyer, partner, Grant Thornton Bharat.

The Immediate Payment Service (IMPS) transaction volume was seen at 493 million in October, up 4 per cent compared to 473 million in September. In value terms, this was up 6 per cent during the month to Rs 5.38 trillion versus Rs 5.07 trillion in September 2023. This was a 2 per cent growth in volume terms and 15 per cent in value terms compared to the same period last year. In August, IMPS numbers were seen at 489 million in volume and Rs 5.14 trillion in value.

In the case of Fasttag transactions, the month saw a 7 per cent increase in volume to 320 million, against 299 million in September. On the other hand, the value of such transactions in October was seen at Rs 5,539 crore, up 9 per cent compared to Rs 5,089 crore in September.

The October numbers were 13 per cent higher in volume and 24 per cent higher in value compared to the same month last year.

During the month under review, Aadhaar-Enabled Payment System (AePS) was marginally down in volume by 1 per cent at 100 million compared to 101 million in September. In value terms too, this was marginally down at Rs 25,973 crore versus Rs 25,984 crore in September 2023. It was 107 million and Rs 27,500 crore respectively, in August — a 15 per cent decline in volume and 17 per cent fall in value compared to the same period in 2022.

“This rise in UPI numbers can be attributed to various factors, including higher smartphone penetration, a growing digital-savvy population, and the convenience offered by UPI for both consumers and businesses. Furthermore, this surge in UPI transactions reflects a shift in consumer behavior, moving away from traditional cash transactions towards digital alternatives. It also highlights the government’s successful push towards a cashless economy, aligning with its Digital India initiative,” said Sachin Castelino, chief strategy & transformation officer, In-Solutions Global.