Summary
1. The Unified Payment Interface transactions increased significantly by 13.6% in March, reaching 18.30 billion compared to 16.11 billion in February, establishing a new all-time high record.
2. According to data released by the National Payments Corporation of India (NPCI), the 18.30 billion transactions processed in March represented a total value of INR 24.77 lakh crore, marking a substantial 12.8% month-on-month (MoM) growth from the INR 21.96 lakh crore recorded in February.
3. Daily transaction metrics showed positive momentum with the average number of transactions processed each day climbing to 590 million in March, an increase from the 575 million daily transactions documented in February.
Digital Payments in India Continue Upward Trajectory with Impressive Monthly Growth
Unified Payment Interface (UPI) transactions reached an unprecedented milestone in March, climbing 13.6% to 18.30 billion from February’s 16.11 billion, establishing a new all-time high for the digital payment system. When compared to the same period last year, the transaction volume demonstrated remarkable growth with a 36% year-on-year (YoY) increase.
This significant rebound comes just one month after the payment platform experienced a 5% decline to 16.11 billion transactions in February, which had temporarily halted the consecutive record-breaking performance observed in the previous two months.
Transaction Value Crosses INR 24 Lakh Crore Mark
According to official data released by the National Payments Corporation of India (NPCI), the record-breaking 18.30 billion transactions in March represented a total value of INR 24.77 lakh crore. This figure reflects a substantial 12.8% month-on-month (MoM) increase from the INR 21.96 lakh crore processed in February.
Daily Transaction Metrics Show Steady Growth
The daily transaction metrics also demonstrated positive momentum during the month under review. The average number of transactions processed each day rose to 590 million in March, up from 575 million daily transactions recorded in February. Additionally, the average daily transaction value reached INR 79,910 crore during March, highlighting the growing preference for UPI as a payment method across India.
The continued growth in both transaction volume and value underscores UPI’s expanding footprint in India’s digital payment landscape and its increasing adoption among consumers and businesses nationwide.
Explosive Growth in Digital Payments Ecosystem
While transaction volumes have exhibited fluctuations across recent months, India’s indigenous Unified Payments Interface (UPI) continues to strengthen its position within the country’s digital payment landscape. Before the March milestone, UPI had achieved its previous record in January with 16.99 billion processed transactions.
The previous calendar year marked a watershed moment for UPI adoption throughout India. During 2024, the platform facilitated a remarkable 17,220 crore transactions, marking a substantial 46% year-over-year growth compared to 11,768 crore in 2023. The financial value represented by these transactions saw a significant 35% increase, totaling INR 246.82 lakh crore versus INR 182.84 lakh crore in the preceding year.
December stood out as a particularly momentous period for the UPI ecosystem in 2024, with users executing 1,673 crore monthly transactions.
Research published by the Reserve Bank of India indicates that UPI has established itself as the preferred digital payment method across the nation, representing over 85% of all digital financial exchanges in India during 2024. The report emphasizes that from 20,787 crore digital payments documented throughout the year, an overwhelming 17,221 crore were processed via the UPI system.
While the National Payments Corporation of India (NPCI) has not yet disclosed third-party operator statistics for March, market consolidation was evident through February, with PhonePe and GooglePay retaining their market leadership. These two service providers jointly held more than 85% market share throughout 2024.
Innovation and Policy Development
As UPI adoption accelerates nationwide, governmental authorities are initiating various modifications across multiple dimensions to refine the interface and extend its reach to broader user segments.
In a significant policy initiative, the central government recently sanctioned an ‘incentive program’ with a budget allocation of INR 1,500 crore, specifically crafted to promote low-value BHIM-UPI transactions among small business operators. This program will deliver financial incentives for transactions up to INR 2,000 completed during the 2024-25 fiscal period.
Meanwhile, the Payments Council of India (PCI) has formally approached Prime Minister Narendra Modi requesting the implementation of MDR (merchant discount rate) on UPI and RuPay transactions for larger commercial establishments.
To strengthen ecosystem transparency, NPCI has introduced new regulations requiring UPI applications to configure users’ default settings as “checked out” during number portability processes. This framework enables users to specifically “opt-in” should they desire their number to be transferred. This regulatory update became operational on April 1.
The government’s initiatives to expand UPI for international transactions have received considerable attention. Recently, India’s diplomatic representative to Qatar confirmed that UPI is scheduled for comprehensive implementation in the Gulf nation “soon.” Throughout 2024, the RBI formed strategic partnerships with central banking institutions across Malaysia, Philippines, Singapore, and Thailand to connect UPI with their respective rapid payment infrastructures, enabling cross-border transaction capabilities.
However, smaller UPI providers encounter obstacles in expanding their operations due to regulatory standards imposed by the Financial Action Task Force (FATF). In response, government officials have recently requested the global anti-money laundering organization to adjust these compliance requirements.
NPCI has successfully introduced UPI services to multiple international markets, including the UAE, Nepal, France, and Sri Lanka, further expanding the platform’s global presence.
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