Over the past few years, India has seen a massive increase in digital payments, thanks to various initiatives from fintech companies, the government, and the whole demonetization drive in the country. Now, a recent report from India’s National Payments Corporation (NPCI) revealed that April 2022 recorded all-time high UPI payments in India, reaching a transaction value of nearly Rs 10 trillion. Check out the details below.
April 2022 Saw All-Time High UPI Transactions in India
A recent report by NPCI reveals that the digital payments platform Unified Payments Interface (UPI) recorded 5.58 billion transactions in April 2022 alone, setting a new record for the payments platform in India since its inception in 2016. The transactional value reached Rs 9.83 trillion as digital payments continued to garner new users in the country.
In March this year, UPI saw 5.4 billion transactions worth Rs 9.6 trillion. So, on a month-on-month basis, the digital payments platform saw a 3.33% rise in transactions and a 2.36% increase in the value of transactions in India.
However, if we take a look at the year-on-year (YoY) difference, UPI saw a 111% jump in the volume of transactions and nearly a 100% increase in transactional value as compared to the previous year. In April 2021, UPI processed only 2.64 billion transactions worth Rs 4.93 trillion. To recall, UPI achieved its first milestone by recording over 1 billion transactions back in 2019.
Now, some of the primary reasons for the drastic increase in UPI payments in India include cashback initiatives from companies like Google Pay, Paytm, and even WhatsApp is planning to do the same again. This is to lure more users toward the digital payments sector. The government is also testing initiatives like 123Pay, which lets feature phone users make digital payments without an active internet connection, and UPI Lite to further boost the digital payments sector in India.
Going forward, the digital payments sector is expected to further expand as more users switch from physical payments to the digital way. NPCI aims for UPI transactions worth $1 billion a day in the next 3 to 5 years. So, what do you think? Do let us know your thoughts on the expanding digital payments sector in India in the comments below.