After a sluggish performance in June, the Unified Payments Interface (UPI) in India experienced a remarkable resurgence in July, witnessing a 6.6% month-on-month (MoM) growth with 996 Cr transactions. This impressive surge brings UPI tantalisingly close to its ambitious target of achieving 1,000 Cr transactions per month. The data, released by the National Payments Corporation of India (NPCI), indicates substantial growth in both transaction count and value, showcasing the ongoing dominance of UPI in the digital payments landscape.
1. UPI Transactions Reach INR 15.34 Lakh Cr in July 2023:
The month of July 2023 saw a remarkable upswing in UPI transactions, amounting to INR 15.34 Lakh Cr. This represents a 4% MoM increase, highlighting the resilience and growing popularity of UPI as a preferred payment method among Indian consumers and businesses.
2. Strong Year-on-Year Growth in Transaction Count and Value:
Compared to July 2022, the UPI transaction count witnessed an impressive year-on-year (YoY) growth of 58%, soaring from 628 Cr to the current figure. Additionally, the transaction value also experienced a substantial YoY growth rate of 44%, reaching INR 10.63 Lakh Cr in July 2023.
3. Key Players Continue Dominance in the UPI Ecosystem:
PhonePe, Google Pay, and Paytm continued to assert their stronghold over the digital payments ecosystem, accounting for a staggering 96.8% of the total transaction count in July 2023. While the specific breakdown of app-wise transactions is yet to be released by NPCI, these leading players are expected to maintain their dominance in the market.
4. Steady Adoption and Future Developments:
The data for July aligns with the recurring trend of UPI transactions rising every alternate month, indicating consistent adoption by users and fintech players. Furthermore, the recent agreement between the Reserve Bank of India (RBI) and the Central Bank of the UAE to link UPI with its counterpart Instant Payment Platform (IPP) signals the potential for cross-border fund transfers. Additionally, Prime Minister Narendra Modi’s announcement during his France visit of UPI’s availability for use in Europe further underlines the platform’s international potential.
5. UPI Lite Features and Upcoming Developments:
Fintech players like Google Pay have expanded their offerings by introducing UPI Lite features in India, joining the ranks of PhonePe and Paytm. With several developments in the pipeline, the future of UPI remains promising and it will be interesting to see how the space matures over time.
The strong resurgence of UPI in July showcases its resilience and popularity in the Indian digital payments landscape. With consistent growth in both transaction count and value, UPI continues to assert its dominance in the market. As the platform inches closer to the milestone of 1,000 Cr monthly transactions, the industry eagerly awaits the next month’s data to see if UPI can breach this significant threshold. With ongoing developments and increasing adoption, UPI’s journey is set to unfold with new possibilities and opportunities in the near future.
