UPI transactions fell by 1% month on month (MoM) to 13.30 billion in April 2024 from 13.44 billion in March. On a year-on-year basis, the transaction count climbed 50%. In April, the transaction volume was INR 19.64 lakh crore, down from INR 19.78 lakh crore in March.
The Unified Payments Interface (UPI) transactions fell marginally, 1% month on month (MoM), to 13.30 billion in April from 13.44 billion the prior month.
Year on year (YoY), the transaction count increased by 50 percent.
According to data from the National Payments Corporation of India, transaction volume in April was INR 19.64 lakh crore, down from INR 19.78 lakh crore in March. However, it also increased 40% year on year.
Governor of the Reserve Bank of India Shaktikanta Das earlier this year credited the growing use of UPI for India’s noteworthy share of nearly 46% in worldwide digital transactions.
“In 2023, UPI is expected to account for over 80% of all digital payments. At the macro level, the volume of UPI transactions has surged from 43 crore in 2017 to 11,761 crore in 2023,” he stated.
In 2023, the number of UPI transactions increased by than 60% year on year to a record 11,768 crore, with the total value of UPI transactions increasing by more than 40% year on year to INR 182.84 lakh crore.
The Indian payment infrastructure has already expanded outside its borders, entering Nepal, France, New Zealand, and other countries.
The government has implemented initiatives to increase UPI usage, as has the NPCI. The NPCI, in particular, has taken proactive steps to increase UPI use by delivering new features and services. Its initiatives, including UPI Lite, credit lines on UPI, UPI LITE X, Tap & Pay, Hello! UPI, and BillPay Connect, have aided in this attempt.
Currently, NPCI is looking into a cheaper interchange fee structure than that of a credit card transaction. These charges could range from 1% to 1.2% every transaction. Currently, the credit card transaction interchange cost ranges from 1.8% to 2.2%. It is important to remember that there is currently no specified interchange fee for credit lines on UPI by NPCI.
Furthermore, the NPCI is considering revisiting its decision to impose a 30% market share cap on payment companies that offer UPI services by the end of the year. The deadline for adopting this adjustment remains December 2024. This cap was first proposed in 2022, pushing existing businesses to limit their market share over a two-year period.
