UPI transactions cross Rs 10 lakh crore milestone in May

The Unified Payments Interface (UPI), India’s flagship digital platform, has processed transactions worth Rs 10 lakh crore in May, a record high since the time it was launched in 2016.

The instant real-time payments system registered 595 crore transactions in the month, up 6.63% from 558 crore in April, according to data from the National Payments Corporation of India (NPCI).

Also Read | Recovery getting entrenched and broadening despite risks: RBI annual report

Since its launch in 2016, UPI has seen widespread acceptance, spurred by the outbreak of THE COVID-19 pandemic. At the beginning of the pandemic in March 2020, the number of transactions stood at 124 crore aggregating to Rs 2.06 lakh crore.

As compared to May 2021, the number of transactions surged by 117% and the value of transactions doubled from Rs 5 lakh crore in the previous year, NPCI data shows.

Also Read | ‘There’s a buffer’: Why IMF’s Gita Gopinath thinks risk of a recession is low

In financial year 2021-22, UPI processed more than 4,600 crore transactions amounting to over Rs 84 lakh crore, thus breaching the $1 trillion mark. In the financial year 2020-21, it had processed 2,228 crore transactions, amounting to Rs 41 lakh crore. So, both the volume and value of transactions doubled in a year’s time.

NPCI, the umbrella entity that manages UPI, RuPay, Bharat Bill Pay, etc, is aiming for UPI transactions worth $1 billion a day in the coming two or three years. NPCI would follow the three “zero” approaches – zero-touch (contactless), zero time (it must be faster than cash), and zero cost to the customer – to reach the milestone.

Also Read | SEBI simplifies payment process via UPI for IPO allotment

Currently, UPI transactions are dominated by three key players – PhonePe, Google Pay, and Paytm Payments Bank. PhonePe has a market share of 47% in monthly transactions, while Google Pay and Paytm Payments Bank have a shareS of 35% and 15%, respectively.

Also Read | India Q4 GDP: Eight core industries grow 8.4% in April hitting six months high

Recent initiatives by the Reserve Bank of India (RBI) would also go a long way in achieving the milestone. The RBI, along with NPCI, launched the UPI123Pay for 400 million feature phones, which will allow all transactions to be done through feature phones without an internet connection.