The Unified Payments Interface (UPI) network operated by the National Payments Corporation of India (NPCI) has achieved a new milestone by processing a staggering 14.04 billion transactions in May. This represents an increase from the 13.3 billion transactions recorded in April.
According to data released by NPCI, the value of transactions conducted through UPI also witnessed a rise, reaching Rs 20.45 lakh crore in May compared to Rs 19.64 lakh crore in April. The average daily transaction amount stood at Rs 65,966 crore, with an average daily transaction count of 453 million for the month, seeing a 49 per cent year-on-year (YoY) growth.
Recognised as the fastest-growing digital payments channel in India, UPI continues to expand its reach into rural areas and integrate with government welfare schemes. Efforts by NPCI and the Reserve Bank of India (RBI) aim to encourage beneficiaries of direct benefit transfer (DBT) schemes to conduct routine transactions through the UPI platform.
In an endeavour to diversify the UPI ecosystem and reduce the dominance of key players such as PhonePe and Google Pay, NPCI has been encouraging new third-party payment apps to invest and incentivise consumers. Despite PhonePe holding a market share of 48.86 per cent by volume and Google Pay following closely with 37.7 per cent as of April, the entry of new players like Flipkart, Slice and Groww signals a shift towards a more competitive landscape.
The extension of the deadline for compliance with transaction volume caps by NPCI until the end of December 2024 provides clarity for stakeholders and allows for strategic planning within the UPI ecosystem.
