UPI: The world’s favourite payment method hits US$ 964 billion in record time

Unified Payments Interface (UPI) has become the world’s leading alternative payment method (APM), processing transactions worth US$ 964 billion (Rs. 80.8 lakh crore) from April to July 2024, marking a 37% YoY increase. UPI managed 3,729.1 transactions per second in 2023, totalling 117.6 billion, according to Paysecure. This surpasses global payment platforms such as China’s Alipay, PayPal, and Brazil’s PIX. The transaction value of UPI reached US$ 2.19 trillion in 2023. In July 2024, UPI recorded a monthly transaction total of US$ 247 billion (Rs. 20.64 lakh crore), the highest ever for the platform.

UPI’s evolution has included integrating credit cards, prepaid wallets, and vouchers, expanding its user base from 300 million to over 400 million. This growth is attributed to increased interoperability and the potential for further expansion among smartphone users. CFO of NTT Data Payments Services India, Mr. Rahul Jain, expects UPI's growth to double in value and volume within 2-3 years due to new products and underutilized smartphone users. Globally, APMs like Skrill, PIX, and Alipay are gaining traction, reflecting a broader trend toward real-time payment systems. UPI, developed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI), has enhanced financial accessibility since its launch in 2016.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.