Processed Over 16 Billion Transactions Worth ₹23.49 Lakh Crores in October 2024
In October 2024, the Unified Payments Interface (UPI) marked a historic achievement by processing 16.58 billion financial transactions in just one month, showcasing its crucial role in India’s digital transformation. Launched in 2016 by the National Payments Corporation of India (NPCI), UPI has revolutionized the country’s payment ecosystem, integrating multiple bank accounts into a single mobile platform. It facilitates seamless fund transfers, merchant payments, and peer-to-peer transactions, making digital payments more accessible, secure, and flexible. This transformation is pivotal in India’s shift towards a cashless economy, helping individuals, small businesses, and merchants embrace digital payments.
UPI in Numbers
UPI processed ₹23.49 Lakh Crores through 16.58 billion transactions in October 2024, showing a remarkable 45% growth compared to 11.40 billion transactions in October 2023. With 632 banks connected to its platform, UPI continues to dominate the Indian payment landscape. The growing transaction volume and value reflect UPI’s expanding influence and the increasing adoption of digital payments across the country.
Why UPI Stands Out
UPI has transformed digital payments in India with its unmatched ease of use, security, and versatility. By enabling 24/7 transactions and offering features such as single-click payments and virtual addresses, UPI ensures both convenience and privacy for users. Here’s what makes UPI unique:
- 24/7 Accessibility: Enables instant money transfers anytime, anywhere, through mobile devices.
- Unified Banking Access: Manage multiple bank accounts from a single app.
- Seamless & Secure Payments: Offers Single Click 2-Factor Authentication for secure transactions.
- Enhanced Privacy: Uses virtual addresses to protect sensitive account details.
- QR Code Integration: Facilitates secure, quick payments by scanning QR codes.
- Cash-On-Delivery Alternative: Replaces cash payments during deliveries, making transactions easier.
- Merchant & In-App Payments: Allows payments to merchants or within apps in a seamless manner.
- Versatile Payment Options: Includes utility bill payments, over-the-counter transactions, and scan-and-pay features.
- Flexibility in Transactions: Supports donations, collections, disbursements, and more.
- Customer Support: Enables users to raise complaints directly via the app.
Impact of UPI
UPI has had a transformative impact on small businesses, street vendors, and migrant workers by providing them with a convenient and efficient way to transfer money and receive payments. Its rapid adoption during the Covid-19 pandemic, when people sought contactless, safer alternatives to cash, accelerated its growth. Beyond infrastructure, UPI’s success lies in the behavioral shift it has fostered—building trust in digital payments and enhancing accessibility.
A significant innovation contributing to this shift is the use of voice boxes by payment apps. Found at snack carts and tea stalls, these devices announce transaction amounts with each QR code scan, ensuring vendors are aware of their earnings even when they can’t check their phones. This simple yet effective feature has helped gain the trust of small merchants, who were once hesitant about moving away from cash.
Additionally, UPI offers users the flexibility to choose their preferred payment apps, regardless of the bank holding their account. This freedom has made it easier for consumers to adopt UPI as their primary payment method. The integration of RuPay credit cards with UPI is another game-changer, enabling users to make payments using credit lines instead of tapping into their savings.
Global Expansion of UPI
India’s digital payments revolution is making waves internationally, with UPI and RuPay expanding rapidly across borders. UPI is now operational in seven countries, including key markets like the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. Its entry into France is particularly significant, marking UPI’s first step into Europe and enabling Indian consumers and businesses to make seamless payments while traveling or living abroad.
Prime Minister Modi has actively promoted UPI’s expansion within the BRICS group, which now includes six new member states. This initiative is set to boost remittance flows, improve financial inclusion, and strengthen India’s position in the global financial landscape.
According to the ACI Worldwide Report 2024, India now leads the world with nearly 49% of global real-time payment transactions, further cementing the country’s leadership in digital payments. As UPI’s international reach grows, India is setting new global standards for financial inclusion and economic empowerment.
Conclusion
UPI has not only revolutionized digital payments in India but has also positioned the country as a global leader in the sector. By providing a seamless, secure, and accessible platform for individuals and businesses, UPI has played a crucial role in promoting financial inclusion and driving India’s transition to a cashless economy. The impressive growth in transaction volumes and UPI’s expanding global footprint are a testament to its transformative impact on the financial landscape. As UPI continues to expand internationally, it is setting new benchmarks for digital payments, empowering citizens, creating new economic opportunities, and enhancing India’s influence in the global financial arena.
Source: PIB
