India has experienced a significant surge in digital payments in recent years, due to different initiatives from fintech businesses, the government, and the country’s overall demonetization campaign. According to a recent study from India’s National Payments Corporation (NPCI), April 2022 saw all-time high UPI payments in India, with approximately Rs 10 trillion in transaction value. Take a look at the information provided below.
April 2022 Saw All-Time High UPI Transactions in India
According to a recent study from the National Payments Corporation of India (NPCI), the digital payments network Unified Payments Interface (UPI) logged 5.58 billion transactions in April 2022 alone, a new high for the platform in India since its debut in 2016. As digital payments continued to gain new users in the nation, the transactional value surpassed Rs 9.83 trillion.
UPI processed 5.4 billion transactions worth Rs 9.6 trillion in March of this year. In India, the digital payments platform experienced a 3.33 percent increase in transactions and a 2.36 percent increase in transaction value month over month.
However, when comparing year-over-year (YoY) data, UPI showed a 111 percent increase in transaction volume and roughly a 100 percent increase in transaction value over the previous year. UPI processed only 2.64 billion transactions worth Rs 4.93 trillion in April 2021. UPI, as you may recall, reached its first milestone in 2019 when it recorded over 1 billion transactions.
Cashback initiatives by businesses like Google Pay, Paytm, and even WhatsApp are intending to do the same again are now some of the key causes for the significant surge in UPI payments in India. This is done in order to entice more people to adopt digital payments. To further promote the digital payments sector in India, the government is piloting initiatives such as 123Pay, which allows feature phone users to make digital payments without an active internet connection, and UPI Lite.
As more people transition from physical to digital payments, the digital payments sector is likely to grow in the future. In the next 3 to 5 years, NPCI wants to see $1 billion in UPI transactions every day. So, what are your thoughts? Please share your thoughts on India’s growing digital payments sector in the comments section below.
