UPI hits a new high with 2.3 billion transactions worth ~4.3 trn in Jan

Continuing an upward trajectory, digital payments in January saw decent growth with Unified Payments Interface (UPI), the flagship payments platform of National Payments Corporation of India (NPCI), touching a new high — both in terms of volume and value.

According to the data released by NPCI for January, UPI recorded 2.3 billion transactions worth ~4.3 trillion — up 3 per cent both in volume and value terms.

On a year-on-year (YOY) basis, UPI’S transaction volume jumped 76.5 per cent, while transaction value jumped nearly 100 per cent. It breached the 2-billion (volume) mark for the fourth straight month.

In December, it had handled 2.23 billion transactions worth ~4.16 trillion. In November, it processed 2.21 billion transactions worth ~3.9 trillion.

Launched in 2016, UPI crossed 1 billion transactions for the first time in October 2019. While it took UPI three years to reach 1 billion transactions in a month, the next billion came in under a year.

Digital payments, especially UPI, saw increased adoption in 2020 due to the pandemic. Notwithstanding a minor blip in the initial months of the pandemic, where transaction volume and value dipped, the recovery was fast, and NPCI’S payment platforms, namely UPI, Immediate Payment Service (IMPS), and others, recorded fresh highs in the following months, assisted by an aversion towards cash and card use by the general population.

In January, IMPS recorded 2.5-per cent decline in transaction count at 346.55 million, compared to 355.69 million transactions in December 2020. The transaction value declined 1.38 per cent in the same period. However, the transaction count recorded 33.5-per cent jump YOY.

Bharat Bill Payment System recorded 27.24 million transactions in January worth ~4,051.92 crore. It recorded 26.22 million transactions in December at ~3,962.76 crore.

Similarly, NPCI’S National Electronic Toll Collection-operated FASTAG recorded 148.56 million transactions worth ~2,397.84 crore in January. In December 2020, it had reported 138.41 million transactions worth ~2,303.79 crore, while in November, it had recorded 124.88 million transactions worth ~2,102.02 crore.