Digital Payments Surge: UPI Transactions Reach Rs 20.64 Trillion in July 2024

UPI payments saw a 45% yearly growth, with transactions totaling Rs 20.64 trillion in July 2024. The average daily transaction value hit Rs 66,590 crore. UPI dominated digital payments, accounting for 80% of digital transactions in India.

In a significant boost for digital payments, transactions through the Unified Payments Interface (UPI) grew by 45 percent year-on-year, data from the National Payment Corporation of India (NPCI) revealed. The value of these transactions surged over 35 percent, totaling an impressive Rs 20.64 trillion.

The month of July 2024 marks the third consecutive month where total transactions exceeded Rs 20 trillion. In the preceding months, June recorded a transaction value of Rs 20.07 trillion, while May saw transactions worth Rs 20.44 trillion.

Analyzing further, NPCI data showed that the average daily transaction value through UPI in July 2024 was Rs 466 million, translating to about Rs 66,590 crore. Compared to June, July saw a 3.95 percent increase in the volume of transactions and a 2.84 percent rise in the transaction value.

During the first four months of the fiscal year 2024-25, UPI saw a total of Rs 80.79 trillion across approximately 55.66 billion transactions. This is a notable increase from the last fiscal year, where total UPI transactions stood at 131 billion, up from 84 billion in 2022-23.

According to a monthly bulletin from the Reserve Bank of India (RBI), UPI transactions have escalated ten-fold over the last four years, surging from 12.5 billion in 2019-20 to an astounding 131 billion in 2023-24. This remarkable growth means UPI now accounts for 80 percent of India's total digital payments. Within the UPI segment, PhonePe and Google Pay dominate with a combined 86 percent market share, as noted in the Boston Consulting Group (BCG) Banking Sector Roundup for 2023-24.

The data also highlights a shift in digital payment methods: credit card usage has doubled in the last three years, while debit card transactions have dropped by 43 percent year-on-year. The technology’s device-agnostic approach has furthered financial inclusion, making digital payments accessible at the grassroots level, propelling India's digital payments to new heights.

The Indian government has been actively promoting UPI beyond the country's borders, aiming to extend its benefits globally. UPI, a mobile-based fast payment system, enables round-the-clock payments using a Virtual Payment Address (VPA).

Currently, UPI stands tall, contributing to nearly 80 percent of digital payments within India and helping the country account for 46 percent of the world's digital transactions, based on 2022 data. (ANI)