UPI Surpasses 500 Million Daily Transactions in September: NPCI Report

In September 2024, the Unified Payments Interface (UPI) network achieved a significant milestone by processing over 500 million daily transactions, as reported by the National Payments Corporation of India (NPCI). This remarkable achievement underscores UPI's growing role as a vital component of India's digital payment ecosystem.

Consistent High Transaction Value

For the fifth consecutive month, the total value of UPI transactions remained impressive, staying above the ₹20 lakh crore mark. This consistency highlights the sustained reliance on UPI by consumers and businesses alike, reinforcing its status as a preferred payment method in the country.

Growth in Average Daily Transaction Values

In September, the average daily transaction value reached ₹68,800 crore, a notable increase from ₹66,475 crore recorded in August. This rise signifies a growing confidence among users in utilizing UPI for higher-value transactions, indicating that more people are engaging in significant purchases through digital means.

Year-on-Year Growth of UPI Transactions

When compared to the same period last year, UPI transactions experienced an impressive surge of 31%, totaling ₹20.64 lakh crore. This growth reflects the increasing acceptance and adoption of UPI as a primary payment method across various sectors, including retail, services, and e-commerce.

Instant Mobile Payments with UPI

UPI has revolutionized the way payments are made in India, enabling seamless, real-time transactions directly from mobile devices. Users can make payments quickly and securely, enhancing convenience and efficiency in daily financial activities. As UPI continues to expand, it’s clear that it plays a crucial role in supporting India’s digital payment landscape.

Insights from Industry Experts

Commenting on these developments, Sunil Rongala, Senior Vice President and Head of Strategy, Innovation & Analytics at Worldline India, stated, “The September UPI transaction numbers reflect, once again, how UPI has become a part and parcel of digital transactions in India. It has been embraced as the payment of choice among millions of buyers as well as merchants.”

Rongala further noted that while the transaction value remained stable at ₹20.64 lakh crore, the number of transactions increased from 14.44 billion in July to 15.04 billion in September. This shift highlights UPI's growing popularity for microtransactions, showcasing its versatility and convenience for everyday purchases.

Performance of Other Digital Payment Platforms

Alongside UPI's remarkable growth, other digital payment platforms also demonstrated steady performance in September.

FASTag Transactions

FASTag, a system designed for automatic toll collection on national highways, maintained a consistent daily transaction volume of 11 million. However, the value of these transactions increased to ₹187 crore per day, up from ₹181 crore in August. This growth indicates a higher utilization of the FASTag system, reflecting the ongoing commitment to enhancing traffic flow and toll collection efficiency across the country.

Aadhaar Enabled Payment System (AePS)

The Aadhaar Enabled Payment System (AePS) also saw a notable increase in daily transaction volumes, reaching 100 million in September. The value of these transactions rose to ₹805 crore daily, compared to ₹796 crore in August. AePS allows users to access banking services through their Aadhaar numbers, promoting financial inclusion and enabling transactions even in remote areas.

Conclusion

The impressive growth of UPI and other digital payment platforms showcases the increasing digitalization of financial transactions in India. With the sustained rise in both the number of transactions and their overall value, it is evident that consumers are embracing digital payment methods as part of their everyday lives. As UPI continues to evolve and innovate, it is likely to further solidify its position as a cornerstone of India's digital economy, driving financial inclusion and convenience for millions of users across the nation.