UPI Hits Record 15 Bn Transactions In September

Unified Payments Interface (UPI) reached a major milestone in September, processing over 15 billion transactions in a single month for the first time, according to the National Payments Corporation of India (NPCI).

The data showed UPI handled 15.04 billion transactions worth Rs 20.64 lakh crore, marking a 0.5 per cent rise from August's 14.96 billion transactions. This represents a 42 per cent year-on-year growth. UPI had first crossed the 10 billion monthly transaction mark in August last year, with daily transactions now exceeding 500 million.

On 2 July 2024, UPI reached 500 million daily transactions for the first time. While app-specific data for September is yet to be released, PhonePe led the market in August with a 48.36 per cent share, followed by Google Pay at 37.3 per cent and Paytm at 7.21 per cent. Cred also emerged as a key player, with new competitors like Flipkart, NAVI, and BharatPe entering the space.

Dilip Modi, Founder and Chief Executive Officer (CEO), Spice Money said, "The impressive growth of UPI, surpassing 500 million daily transactions in September and maintaining a value above Rs 20 lakh crore for the fifth consecutive month, showcases the growing adoption of digital payments across India. This consistent double-digit growth demonstrates the transformation taking place in our payments ecosystem, making financial transactions more seamless and inclusive.”

As more individuals and businesses, from urban centres to semi-urban and rural areas, transition to digital modes of payment, India is witnessing a transformation that is making financial transactions faster, more secure, and more accessible. “As we continue to expand our reach, the impact of digital payments is evident not only in improving convenience but also in reducing dependency on cash, enhancing transparency in financial dealings, and supporting the overall formalisation of the economy,” Modi added. 

Meanwhile, NPCI has expanded UPI's reach beyond India, introducing instant payment services in countries like Singapore, France, Mauritius, Nepal, Bhutan, Sri Lanka, and the UAE.

Recently the National Payments Corporation of India’s (NPCI) overseas subsidiary, NPCI International Payments or NIPL, has partnered with Trinidad and Tobago’s Ministry of Digital Transformation (MDT) to develop a real-time payments platform similar to India's Unified Payments Interface (UPI). This collaboration marks Trinidad and Tobago as the first Caribbean nation to embrace UPI technology.

This partnership comes amid India's ongoing discussions with African and South American nations to develop similar digital payment systems based on the UPI model, with plans to launch these initiatives by early 2027. India aims to explore interoperability and connectivity in both domestic and international payment networks through such collaborations.

For instance, NPCI has already signed an MoU with the Maldives' economic development and trade ministry to introduce UPI in the Indian Ocean archipelago. NIPL, a wholly-owned subsidiary of NPCI launched in 2020, has been actively developing UPI and the RuPay card scheme for international markets.