New Delhi, September 2, 2024 – The Unified Payments Interface (UPI) continues to gain momentum in India, with transaction volumes surging 41% year-on-year in August. According to data released by the National Payments Corporation of India (NPCI), UPI transactions reached 14.96 billion in August, up from 14.44 billion in July.
While the total transaction value declined slightly by 0.14% to INR 20.61 lakh crore in August compared to INR 20.64 lakh crore in July, the annual growth rate remains impressive at 31%. This surge in UPI transactions underscores the increasing preference for digital payments among Indian consumers.
Prime Minister Narendra Modi has lauded UPI as a “great example of India’s fintech success,” and the country now accounts for more than half of global digital transactions. Last year, UPI transactions surpassed the 100 billion mark, highlighting its rapid adoption.
Fintech giants PhonePe and Google Pay continue to dominate the UPI ecosystem, holding market shares of 48.3% and 37%, respectively, as of July. To attract more customers, these companies have introduced various new features and services. For instance, PhonePe recently launched a credit line on UPI, while Google Pay has rolled out UPI Circle, which allows users’ trusted contacts to make online transactions without linking their bank accounts.
The growing adoption of UPI has prompted the NPCI and the government to promote the system globally. Prime Minister Modi announced plans to integrate UPI with Malaysia’s national payments network, PayNet. India and Maldives have also inked a deal to roll out UPI in the Indian Ocean archipelago.
NPCI International Payments Limited (NIPL), the international arm of NPCI, has signed agreements with the Bank of Namibia to develop a UPI-like digital payments system and with Transcorp International Limited to launch ‘UPI One World’ wallet for foreign tourists.
Several countries, including Sri Lanka, Mauritius, Bhutan, Nepal, the UAE, and Canada, have adopted India’s UPI payment model. India has also signed MoUs with over 30 countries to expand UPI globally.
To further fuel the adoption of digital payments, NPCI has launched several new features such as UPI Lite for low-value transactions, UPI Lite X for offline transactions, and Hello! UPI for voice-based payments.
