UPI Transactions Hit Record High in April 2023

Unified Payments Interface (UPI) transactions surged to a record high in April 2023, with transactions worth Rs 14.5 trillion in value and 8.7 billion in volume. This marked a YoY increase of 43% and 59%, respectively. The surge was attributed to a rise in discretionary spending and planned expenditure, with the last three days of April alone seeing nearly 1 billion transactions worth around Rs 1.37 trillion.

Digital Lending Contributes to UPI Growth

One factor contributing to the growth of UPI transactions is the rise of digital lending. Lenders are opting to disburse loans through the UPI platform, which has further boosted transaction volumes. In addition, experts believe that the weekend ending in April also contributed to the surge, as people tend to spend more during this period.

IMPS and FASTag Transactions Also Rise

Aside from UPI, Immediate Payment Service (IMPS) transactions rose 5% YoY to 486 million in April, with a value increase of 17% YoY to Rs 5.2 trillion. FASTag transactions also saw a rise of 15% YoY in volume and 22% YoY in value, with 305 million transactions worth Rs 5,149 crore processed on the platform in April.

According to information from the National Payments Corporation of India NPCI, the final three days of April saw close to 1 billion transactions worth over Rs 1.37 trillion. According to analysts, this was caused by an increase in planned and discretionary spending because April finished on a weekend, when spending is often greater.

“When people start making debit payments, these are linked to two components. First component is money in hand and the second component is expenses and transactions planned. During the weekend, people start spending money,”, according to Fibe co-founder and CEO Akshay Mehrotra.

“On account of being a working Saturday, salaries could be April 29. This meant that money was available to make various payments on Saturday. UPIs are linked to money in the bank account,” he continued.

News conclusion 

The surge in Unified Payments Interface (UPI) transactions to a record high in April 2023 is a testament to the increasing adoption of digital payments in India. The rise in discretionary spending, planned expenditure, and the growth of digital lending have all contributed to the growth of UPI transactions. This trend is likely to continue in the coming months, with UPI remaining the preferred mode of payment for many Indians.

With the ongoing push towards a cashless economy, the growth of UPI and other digital payment platforms is expected to accelerate even further, driving the country towards a more convenient and secure future.Overall, the growth of digital payments in India continues to accelerate, with UPI transactions leading the way. The rise of digital lending and the convenience of UPI payments are expected to fuel further growth in the coming months.