UPI sets new milestone with 14.04 billion transactions worth more than ₹ 20.45 lakh crore in May

The Unified Payments Interface (UPI) network processed a significant 14.04 billion transactions in May 2024. This highlights a jump from the 13.3 billion transactions recorded in April 2024. The NPCI’s latest data showcases a significant rise in both transaction volume and value. As an instant real-time payment system, UPI facilitates inter-bank transactions.

The value of transactions conducted via UPI also experienced a surge, touching ₹ 20.45 lakh crore in May compared to ₹ 19.64 lakh crore in April, as per the data of National Payments Corporation of India (NPCI), which operates the UPI services.

The NPCI’s latest data showcases a marked rise in both transaction volume and value. As an instant real-time payment system, UPI facilitates inter-bank transactions.

The average daily transaction amount stood at ₹65,966 crore, with an average daily transaction count of 453 million for the month, witnessing a 49% year-on-year (YoY) growth.

This rise follows a slight downward movement in transaction volumes that the network registered in April.

As the fastest-growing digital payments system in the country, UPI continues to strengthen its hold in rural areas and integrate with government welfare schemes.

To diversify the UPI ecosystem and reduce the dominance of key players such as PhonePe and Google Pay, NPCI has been reaching out to new third-party payment apps to invest and incentivise consumers.

UPI has emerged as a relatively popular system among the Indian population. The payment system is already operational in a few other countries, including Singapore and the United Arab Emirates (UAE).

With the NPCI giving an extension to the deadline for compliance with the transaction volume cap until the end of December 2024, this will extend clarity for stakeholders and allow strategic planning within the UPI ecosystem.