Online payments in India: The Unified Payments Interface (UPI) makes digital payment as easy as sending a text or scanning a QR code. Launched in 2016, the platform accounted for 73% of all non-cash retail payments in India in the year to March.
According to the Reserve Bank of India’s (RBI), 30 May annual report, and UPI transaction data from the National Payments Corp. of India (NPCI), aggregate UPI transactions stood at ₹139.2 trillion in FY23.
Growing at a steady pace, UPI transactions are likely to reach 1 billion per day by 2026-27, accounting for 90 percent of the retail digital payments in the country, said the PwC report titled titled “The Indian Payments Handbook – 2022-27”.
The widespread adoption of UPI in not just tier 1 cities but also tier 2 & 3 cities in just a matter of 7 years, coupled with the demand for UPI in other countries is a testament to it being one of the most advanced payment systems today.
“What’s equally exciting and important to note is that alongside making the ecosystem of transacting simpler and more convenient, UPI is also enabling multiple associated financial services such as expense tracking, budgeting, saving, investing, and more,” said Satyajeet Kunjeer, Founder and CEO, Deciml.
Over the past decade, India has witnessed a significant transformation in the banking and finance space, including the emergence of neo-digital banks, novel payment platforms, and the rise of fintech as a whole
India is expected to cross 10 billion UPI transactions in June, experts told Livemint.
“Digital payments, led by UPI, have become the favored transaction method. In 2022 alone, there were 74 billion transactions, and we are now on the brink of an unprecedented milestone: the possibility of surpassing 10 billion UPI transactions in the month of June alone,” said Karthik Thenkarai, Co-founder and Director of Paycorp.io
This surge in transactions indicates increased spending and a remarkable shift towards digital adoption by consumers, replacing the previous reliance on cash-based transactions. Hence, this landmark in UPI transactions is indeed a welcome sign for an evolved digital India, added Karthik Thenkarai.
Source By: livemint
