The National Payments Corporation of India recently revealed that the Unified Payment Interface (UPI) transaction value reached a record high at ₹18.41 trillion in January 2024. This 1% hike from the transaction value of December 2023 attests to the significant increase in the adoption of digital payment across the country.
UPI transaction volume also witnessed a 1.5% increase, reaching 12.20 billion in January 2024. The data also revealed that the UPI transactions value and volume have seen a 42% and 52% YoY growth, respectively.
A report by PwC also states that UPI transaction volume is expected to surpass 100 crores a day mark by FY27 and account for 90% of the volume in the next 5 years, dominating the retail digital payment landscape.
NPCI is also looking to reach the 10,000-crore mark for monthly transaction volume and revealed several initiatives that will facilitate this. These include:
With this, NPCI aims to create a digital payment ecosystem that is sustainable and inclusive.
The corporation is also planning to integrate BHASHa INterface for India (Bhashini), which will enable users to make conversational payments. Bhashini is an AI-powered multi-language translation tool launched in 2022.
UPI has expanded not just across India but also internationally in countries like Canada, France, Nepal, Bhutan and UAE. There are also talks of expansion to African and South American countries and New Zealand.
Google Pay services are set to enter international markets and facilitate the global expansion of UPI via Google’s collaboration with NPCI International Payments Limited (NIPL).
Experts say that there are several factors from innovation to value-added features, which drive the growth of digital payment in India.
Akshay Mehrotra, Co-founder and CEO, Fibe said, “The month-on-month rise in UPI transactions is a testament to the convenience and financial flexibility it has brought about, in addition to the RBI’s proposal to hike UPI transaction limit for hospitals and schools, which has opened ‘a new chapter in customer convenience’.”
The shift in consumer behaviour is also a key contributor to the growth of UPI transactions. Today, more and more people are not just comfortable with but also prefer digital payments instead of cash. Some crucial benefits that UPI payments offer include:
NPCI also enabled the linking of RuPay credit cards on UPI, expanding the scope and safety of payments. This not only widens the popularity of credit cards but also of UPI payments, giving rise to cards that club their benefits with a host of other features.
One of these UPI-enabled cards is the Fibe Axis Bank Credit Card, which is India’s first numberless card and also offers several exciting benefits, such as no annual or joining fees, exclusive rewards and discounts. You can apply for it by downloading the Fibe App or registering on the website.
Reference links:
https://www.npci.org.in/PDF/npci/knowledge-center/partner-whitepapers/Conversational-Payments-on-UPI-Unlocking-a-new-frontier-for-next-generation-payments.pdf
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