January Sees Record UPI Transactions in India, Surpassing 16.99 Billion

UPI transactions in January 2023 exceeded 16.99 billion, valued at over Rs 23.48 lakh crore, setting a monthly record. UPI is integral to India’s digital payments, making up 80% of retail transactions. More than 80 apps and 641 banks are currently involved. Internationally, UPI is operational in over 7 countries, facilitating payments for Indian travelers abroad, as noted by Professor Carlos Montes from Cambridge Business School.

In January, UPI transactions reached an unprecedented level, surpassing 16.99 billion, with a total value exceeding Rs 23.48 lakh crore, marking a historic peak for any month, according to recent government statistics. This significant milestone underscores UPI’s pivotal role in India’s digital payments ecosystem, accounting for 80 percent of retail transactions nationwide.

For the financial year 2023-24, the overall transaction volume has exceeded 131 billion, with a total value surpassing Rs 200 lakh crore. UPI has earned its status as the preferred real-time payment method for millions of users due to its user-friendly interface and the expanding network of participating banks and fintech providers, as highlighted by the Ministry of Finance.

As of January, over 80 UPI applications, including bank apps and third-party providers, are actively participating, supported by 641 banks within the UPI framework. In the current financial year (until January), person-to-merchant (P2M) transactions comprise 62.35 percent of the total UPI activity, while person-to-person (P2P) transactions make up the remaining 37.65 percent, indicating a robust trust in P2M transactions for low-value payments.

Professor Carlos Montes from Cambridge Business School has noted that UPI exemplifies a model from which other nations might benefit by studying India’s success. During his visit to India for the NXT event, he received a comprehensive briefing on the operational success and trends of the UPI system.

UPI is also gaining traction globally, facilitating seamless cross-border transactions for Indian travelers. Currently, UPI operates in over seven countries, including major markets such as the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius, enabling Indian nationals to conduct payments abroad efficiently.

In summary, the surge in UPI transactions in January marks a significant achievement for India’s digital payment ecosystem, highlighting its critical role in retail payments. With over 80 applications and numerous banks participating, UPI offers a reliable solution for real-time transactions. Not only is it transforming domestic payments, but it is also expanding internationally, indicating a promising future for global financial interactions.

Original Source: www.ndtv.com