InvestorQ : How has been the growth of UPI payments in India in the last couple of years?
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How has been the growth of UPI payments in India in the last couple of years?

10 months ago

The growth in UPI or Unified Payments Interface based payments has been phenomenal since the demonetization of 2016. In the month of July 2020, UPI transactions grew by 12% sequentially clocking 149 crore transactions, the highest in the last four years since launch. Such transactions were worth Rs.290,000 crore, almost doubling on a YOY basis.

Currently, there are a total of 164 banks live on UPI. These UPI transactions had fallen drastically in the April / May period due to the stringent lockdown and consequent dip in demand. Not just UPI, but even IMPS transfers were up 11% in July at 22.2 crore transactions with a value of Rs.225,000 crore.

The demonetization exercise became a significant turning point in pushing the Indian economy towards adoption of digital payments. In the last few years, government and RBI gave a massive thrust to digital payments as a tool for economic development. Digital transactions are also more transparent, simple, efficient and leave an audit trail thus finishing off any leakages due to the audit trail.

India is expected to contribute 2.2% to the world’s digital payments market by 2023 as per a report by Price Waterhouse Coopers. The volumes of Indian transactions are expected to touch $12.4 trillion globally by 2025. Clearly, UPI is likely to give India the opportunity to drive the next phase of global digital expansion.