In July the Unified Payments Interface (UPI) witnessed a recovery by experiencing a 6.6% increase, in the number of transactions reaching a total of 996 crores. These transactions amounted to INR 15.34 trillion in value bringing UPI closer, to achieving its target of 1000 crore transactions. Notably PhonePe Google Pay and Paytm continue to dominate the market with a combined share of 96.8%. Now everyone eagerly anticipates reaching the milestone in the month.
Following a lackluster performance in June, the Unified Payments Interface (UPI) made a robust comeback in July, experiencing a significant 6.6% month-on-month (MoM) surge in transactions to reach a total of 996 crores. This upswing brings UPI tantalizingly close to achieving its ambitious goal of 1000 crore monthly transactions.
The most recent data, freshly unveiled by the National Payments Corporation of India (NPCI), reveals that UPI facilitated transactions amounting to INR 15.34 lakh crore in July 2023, marking a 4% MoM increase. In terms of transaction volume, the figures for July 2023 reflect a remarkable 58% year-on-year (YoY) expansion from the previous year’s 628 cr transactions. Correspondingly, the transaction value demonstrated a YoY growth rate of 44% from INR 10.63 Lakh cr in July 2022.
In contrast, the preceding month of June 2023 witnessed UPI managing over 933 cr transactions valued at INR 14.75 lakh crore. While the detailed breakdown of UPI transactions across various apps for July 2023 is yet to be disclosed by NPCI, it is widely anticipated that digital payment giants such as PhonePe, Google Pay, and Paytm will continue to maintain their dominant position within the digital payment landscape. Together, these three players accounted for an impressive 96.8% of the total transaction volume in the previous month.
Interestingly, this data conforms to a prevailing pattern where UPI transactions tend to rise in alternating months. Despite minor setbacks, the domain consistently attracts a growing number of users and fintech entities.
July witnessed a noteworthy development as the Reserve Bank of India (RBI) entered into a collaboration with the Central Bank of the UAE to interlink UPI with its counterpart, the Instant Payment Platform (IPP). This integration enables users to seamlessly execute cross-border fund transfers. Additionally, during his official visit to France, Prime Minister Narendra Modi announced that the government-backed payments interface would soon become operational in the European nation.
Simultaneously, Google Pay introduced its UPI Lite features in India last month, joining a league of fintech contenders, including PhonePe and Paytm, that have already implemented this functionality.
As the landscape continues to evolve with an array of forthcoming developments, the trajectory of UPI’s evolution remains an intriguing prospect. All attention now turns to the upcoming month, where the anticipation is palpable to witness if UPI defies the trend and crosses the significant threshold of 1000 crore transactions.
