A remarkable milestone has been achieved by the Unified Payments Interface (UPI), with a total of 1100 crore (11.41 billion) transactions recorded in the month of October. The National Payments Corporation of India (NPCI) reported this significant achievement, representing a total value of Rs 17.16 lakh crore. This number reflects an 8% increase in transactions compared to September, with an 8.6% increase in overall value.
Consistent Growth Since August
Since surpassing the 10 billion mark in August, UPI transactions have consistently maintained their impressive growth trajectory.
PhonePe Continues to Lead the Market
PhonePe has maintained its position as the market leader in UPI transactions for the third consecutive year. Data provided by NPCI reveals that PhonePe has processed more than 5 billion transactions in recent months. Both Google Pay and Paytm also play active roles in the UPI landscape.
Expanding Beyond Indian Borders
The Reserve Bank of India has facilitated the growth of UPI transactions by granting commercial banks the ability to increase credit lines through UPI. The NPCI has introduced new products and features to further stimulate UPI adoption. These innovations include voice-enabled payments and NFC-enabled “Tap and Pay” functionality.
UPI’s expansion extends beyond India’s borders, as it has already made strides in countries like France, Bhutan, Nepal, and Singapore. Plans are underway to introduce UPI in Sri Lanka, the UAE, Canada, New Zealand, South America, and Africa.
Revenue Generation Challenges
Despite its rapid growth, UPI has not yet become a significant source of revenue for fintech companies. The future of UPI, particularly its commercial potential, remains a subject of discussion and exploration.
Festive Season Boost
The surge in UPI transactions during October can be attributed in part to the festive season, with consumers favoring UPI for its robust security features, especially within the e-commerce sector. Both the NPCI and industry experts view UPI as a vital component of India’s digital payment ecosystem.