Unified Payments Interface (UPI) concluded the year 2023 on a remarkable note, setting new records in both transaction count and overall value. December witnessed a staggering 1,202 crore transactions, amounting to more than Rs 18 lakh crore. This achievement represented a slight increase from the already peaked Rs 17.4 lakh crore recorded in November 2023.
Throughout 2023, UPI transactions exhibited robust growth, with over 11,765 transactions amounting to Rs 182.2 lakh crore. This marked a substantial uptick of 59% in transaction volume and 45% in transaction value compared to the previous year, as reported by the National Payments Corporation of India (NPCI).
)
In December alone, UPI transactions reached a value of Rs 18.23 lakh crore, reflecting a 4.8% increase compared to the previous month and an impressive 42% surge on a year-over-year (YoY) basis. The number of transactions exceeded 1,200 crore, indicating a 6.9% monthly growth and a substantial 54% YoY increase.
The upward trajectory in both transaction volume and value on the UPI network gained momentum starting from October, buoyed by the festive season. November saw UPI transactions reaching a value of Rs 17.4 lakh crore, crossing the 11 billion volume mark. In October, UPI recorded 11.41 billion transactions, amounting to Rs 17.17 trillion. The value of transactions rose by 8.6%, accompanied by an 8.1% increase in transaction volume.
Looking ahead, the NPCI has announced the launch of ‘UPI for Secondary Market’ in its Beta phase. This development will enable UPI members to soon implement the ‘Tap and Pay’ functionality with phones equipped with NFC features.
Adding to the innovative strides in the UPI ecosystem, Hitachi Payment Services introduced the country’s first-ever UPI-ATM. Operated as a White Label ATM (WLA) in collaboration with NPCI, this ATM allows users to scan a QR code and withdraw cash, adding a convenient and secure dimension to UPI transactions.
The remarkable growth of UPI transactions signifies the increasing reliance on digital payment solutions in India. The consistent rise in transaction volume and value showcases the widespread adoption of UPI for various financial activities. As the UPI network continues to evolve and introduce new features, it is likely to play a pivotal role in shaping the future of digital payments in the country.
In a broader context, the success of UPI reflects the ongoing digital transformation in India’s financial landscape, with more individuals and businesses embracing technology-driven solutions for their financial transactions. As the ecosystem evolves, it will be interesting to observe how UPI adapts to emerging technologies and user preferences, further contributing to the growth of digital financial services in the country.
