UPI Transactions Soar 49% YoY, Reaching 13.89 Billion in June

Unified Payments Interface (UPI)-based transactions reached an impressive 13.89 billion in June, marking a 49 percent surge on a year-on-year (YoY) basis.

This data was revealed by the National Payments Corporation of India (NPCI) on Monday. The substantial increase highlights the growing adoption and reliance on digital payment methods in India.

Monthly Transaction Volume Comparison

Despite the yearly growth, the transaction volume for June stood at Rs 20.07 lakh crore, which is a 1.9 percent decrease from the Rs 20.45 lakh crore recorded in May. This slight dip indicates a minor fluctuation in monthly transaction volumes, even as the overall trend remains upward on an annual basis.

Yearly Growth in Transaction Volume

On a YoY basis, the transaction volume saw a 36 percent increase. This growth underlines the significant rise in the usage of UPI for various transactions, reflecting the broader acceptance and integration of digital payment systems in everyday financial activities.

Average Daily Transactions

In June, the average daily transaction amount reached Rs 66,903 crore, while the average daily transaction count was 463 million. These figures highlight the extensive use of UPI on a daily basis, further establishing its role as a crucial component of India’s financial ecosystem.

Record Highs in May

The UPI figures for May were particularly noteworthy, achieving the highest value and volume since UPI’s inception in 2016. This milestone underscores the rapid growth and scalability of UPI, positioning it as a leading digital payment platform globally.

IMPS Transaction Volume Decline

The Immediate Payment Service (IMPS) experienced a decline in transaction volume by 7 percent, dropping to 517 million in June from 558 million in May. This reduction contrasts with the overall increase in UPI transactions, suggesting a potential shift in user preference towards UPI.

Growth in Aadhaar Enabled Payment System (AePS)

Conversely, the Aadhaar Enabled Payment System (AePS) saw an 11 percent increase in volume, reaching 100 million in June compared to 90 million in May and 95 million in April. This growth indicates a rising adoption of AePS, which leverages biometric authentication for secure transactions.

RBI’s Participation in Project Nexus

Earlier in the day, the Reserve Bank of India (RBI) announced its participation in Project Nexus, joining forces with four ASEAN countries to develop a platform for instantaneous cross-border retail payments.

Project Nexus, conceived by the Innovation Hub of the Bank for International Settlements (BIS), aims to link India’s UPI with the fast payment systems of Malaysia, Philippines, Singapore, and Thailand.

Conclusion

The surge in UPI transactions to 13.89 billion in June, coupled with the increase in AePS volumes and RBI’s involvement in Project Nexus, reflects the dynamic evolution of India’s digital payment landscape. These developments highlight the growing importance of secure, efficient, and instantaneous payment systems in facilitating both domestic and international transactions.