Transactions on the UPI (Unified Payments Interface) network grew by over 8 per cent in October due to festive season spending, crossing the milestone of 1,100 crore transactions during the month.

The number of transactions stood at 1,141 crore, which is higher than the previous records of 1,056 crore transactions in September and 1,058 crore in August. According to National Payments Corporation of India (NPCI) data, transactions were up 8.05 per cent on the month and 56 per cent on the year.

record transaction

“There has been a significant increase in transactions during October, especially due to the festive season. “This surge is attributed to increased consumer engagement, especially in the e-commerce sector,” said Mandar Agashe, founder and MD, Sarvatra Technologies. He added that volumes were also supported by the potential for micro transactions. Is.

Even in terms of transaction value, UPI saw a growth of 8.61 per cent with record transactions worth ₹17.16 lakh crore compared to ₹15.80 lakh crore last month. The transaction amount was 42 percent higher than a year earlier.

On-year growth in UPI transactions so far in FY2014 remains above 40 per cent for value of transactions and above 50 per cent for volume of UPI trades. In FY23, the UPI platform processed 8,376 crore transactions worth ₹139 lakh crore, while in FY22 there were 4,597 crore transactions worth ₹84 lakh crore.

expert opinion

“The number of transactions in January 2018 was 151 million (15.1 crore); It reached Rs 11 billion (1,100 crore) in October 2023. It would not be surprising if UPI transactions reach Rs 20 billion (₹2,000 crore) per month in the next 18-24 months. “What has sustained this growth and will drive it going forward is person-to-merchant (P2M) transactions,” said Sunil Rongla, Senior Vice President, Head-Strategy, Innovation & Analytics, Worldline India. Increase in.”

Sachin Castellino, Chief Strategy and Transformation Officer, In-Solutions Global, also said that UPI transactions are at a high level due to increased digital adoption at both customer and merchant levels and continued customer engagement by third-party payment applications including incentives. Offers and events.

According to Worldline India, the share of person-to-merchant (P2M) trades in overall UPI transactions increased from 40.3 percent in January 2022 to 57.5 percent in June 2023 and is expected to grow. During January-June, P2M transaction volume grew 119 per cent year-on-year to ₹2,915 crore and value increased 72 per cent to ₹19 lakh crore. On the other hand, P2P transaction volume increased by 22 per cent to Rs 2,275 crore and transaction value increased by 41 per cent to Rs 64 lakh crore.

Harish Prasad, Head of Banking-India, FIS, said, “As the festive season approaches and we move into the third quarter, the expected surge in shopping and travel transactions is likely to drive substantial growth in UPI transaction volumes “

According to a report by PwC India, UPI transactions are expected to reach 100 crore transactions per day by FY2027, which projects UPI to dominate the retail digital payments landscape over the next five years, accounting for 90% of the total transaction volume. Is the percentage.