UPI currently accounts for over 40% of all digital transactions taking place in India.
India’s digital payments landscape has changed. While some developed countries are facing difficulties, India has become a leader in digital asset creation.
Union Minister Ashwini Vaishnav today at the World Economic Forum (WEF) in Davos said India’s digital payments transactions reached $1.5 trillion year-on-year in December 2022, more than the US, UK, Germany and France combined economy.
“India’s digital payments transactions is more than the combined digital payments of four big economies- US, UK, Germany, France,” said Ashwini Vaishnaw at WEF.
Indian consumers have shown greater digital affinity, which has led to the rapid growth of digital payment infrastructure.
Over the past three years, India has recorded unprecedented growth in digital payments transactions. Simple and convenient digital payment methods such as Bharat Interface for Money-Unified Payments Interface (BHIM-UPI) and Immediate Payments Service (IMPS) have recorded significant growth and transformed the digital payment ecosystem.
At the same time, traditional payment methods such as debit cards, credit cards, national electronic funds transfer (NEFT) and real-time gross payment (RTGS) have also grown at a rapid rate. BHIM-UPI has become the preferred payment method for users.
UPI currently accounts for over 40% of all digital transactions taking place in India. This has spurred the development of small business owners and street vendors because it enables fast and safe interbank transactions even for relatively small amounts. UPI has also been a lifesaver during the Covid-19 pandemic, with adoption rapidly expanding for its ability to conduct simple contactless transactions.
