In the year leading up to March, UPI processed 73% of non-cash retail payments in the nation. The platform has paved the way for the expansion of related financial services like spending tracking, budgeting, and investing and is accelerating the country’s move towards digital transactions.
Online transactions in India are now as simple as sending a text message or scanning a QR code thanks to the Unified Payments Interface (UPI). The platform, which was introduced in 2016, handled 73% of all non-cash retail payments in India for the year ending in March.
According to data from the National Payments Corp. of India (NPCI) and the Reserve Bank of India’s (RBI) 30 May annual report, the total value of UPI transactions in FY23 was 139.2 trillion rupees. According to a PwC analysis titled “The Indian Payments Handbook – 2022-27,” UPI transactions are expected to exceed 1 billion per day by 2026–2027, making up 90% of all retail digital payments in the nation
One of the most cutting-edge payment systems available today, UPI has been widely adopted in tier 1 cities as well as tier 2 and tier 3 cities in only a matter of 7 years, and it is in high demand in other nations.
According to Satyajeet Kunjeer, founder and CEO of Deciml, “What’s equally thrilling as well as significant to take into account is that alongside ensuring the process of conducting business easier and more accessible, UPI additionally allows for multiple associated financial services like expense tracking, budgeting, saving, investing, and more.”
India has experienced a tremendous change in the banking and finance sector during the past ten years, including the creation of neo-digital banks, innovative payment systems, and the growth of fintech as a whole.
In June, India is anticipated to surpass 10 billion UPI transactions.
“Digital transactions, spearheaded by UPI, have taken the lead as the most popular transaction type. We are now on the verge of an unprecedented milestone: the potential of surpassing 10 billion UPI transactions in only the month of June,” said Karthik Thenkarai, Co-Founder and Director of Paycorp.io. “In 2022 alone, there were 74 billion operations and we are now on the verge of an unprecedented milestone.
This rise in transactions reflects higher expenditure and a notable move away from cash-based transactions among consumers towards digital adoption. Therefore, Karthik Thenkarai said, this milestone in online transactions is in fact a good omen for an advanced digital India.
