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UPI Records 6.57 Bn Transactions In Aug | Experts React

As far as volume and value, UPI exchanges in August have been the most noteworthy ever on the stage since its start in 2016

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India's Unified Payments Interface (UPI) kept 6.57 billion transactions in August, esteeming Rs 10.72 lakh crore, as per information delivered by the National Payments Corporation of India (NPCI).

As far as volume and value, UPI exchanges in August have been the most noteworthy ever on the stage since its start in 2016.

The long stretch of July saw 6.28 billion exchanges with an all out worth of Rs 10.62 lakh crore.

While UPI has turned into the go-to mode for continuous payments, a circular drifted by the Reserve bank of India last month proposed a layered charge system for UPI payments. The paper likewise proposed swapping the zero-charge structure for UPI exchanges with an endowment.

The government, nonetheless, explained that it won't impose any charges on UPI transactions as concerns of service providers for cost recuperation must be met through different means.

Here is how industry experts reacted:

Mandar Agashe Founder and VC of Sarvatra Technologies

The months of July and August were primarily characterised by sale seasons across platforms and a variety of offers made available by merchants to encourage transactions over UPI has been a key contributor. With rising awareness, we see a large percentage of people, especially from Tier-III and rural regions, confidently embracing the UPI mode for their day-to-day transactions. With a good portion of users largely transacting in the value of up to Rs 500, we are hopeful the share will shift towards higher transactions in the months ahead. 

Interestingly, thanks to the sale seasons, there was a marginal growth of 4 per cent and 7 per cent across P2P and P2M transactions respectively, which is only expected to pick further momentum with the upcoming festive and end-of-year offerings underway. It shouldn't be surprising to see the transactions crossing the 10 billion mark by the end of the festive season.

The pioneering idea is revolutionising India's payment infrastructure and becoming a case study for other nations looking to develop a practical, straightforward, and scalable real-time payment system. With over 30 countries showing interest in implementing UPI, we can expect a substantial pie of UPI transactions coming from overseas. Further, evolving innovation associated with credit card linkage to UPI will lead to various new use cases.

Rajesh Mirjankar, MD & CEO,

UPI transactions reaching 657 crore transactions in August 2022 is evidence of the popularity of UPI and being a preferred mode of payments by increasing number of consumers. The growth in UPI volumes by almost 100 per cent YoY and amounts transacted growing by 75 per cent YoY is just the tip of the iceberg. With the acceptance of card payments via UPI the transaction volumes are bound to grow strongly and the average value per transaction too will increase. Through this growth the NPCI systems have been robust and have rendered uptime that stands along the best in the payments industry. NPCI is on track to achieve their vision of 1 billion transactions per day.

Rohit Kumar, Founding Partner, TQH Consulting

India is leading the world in payments architecture. Its great to see the digital public infrastructure built through UPI grow so rapidly. Not only will this help bolster financial inclusion in India, it'll also help India establish digital financial sovereignty at the global level. Its noteworthy that other countries like the US are already looking to emulate India's success for building their own real-time payments systems.

Our next steps for bolstering the UPI ecosystem must focus on sustainability of operations, fraud detection and reduction, and increasing adoption as well competition among solution providers.

Swapnil Bhaskar, Head of Strategy, Niyo

In our opinion, UPI continues to penetrate further in the payment ecosystem as reflected by an increase in the number of UPI transactions by approx. 5 per cent MoM and value of such transactions increasing by approx. 1 per cent MoM. In other words, the mass adoption of UPI is driving financial inclusion with respect to payments in India.

Dr Jasmin B Gupta, Co-founder and CEO, LXME

UPI is one of the most successful digital payment product as can be seen through its wide acceptability and reach, as it clocks 10.73 lakh crores digital payment transactions value and 657 crores transactions in August. With NPCI planning to take UPI to overseas market, this number is only expected to grow exponentially, as UPI will then become a home-grown alternative to SWIFT. Also with credit card on UPI going live within next few months, the convenience and scope of digital payments will increase manifold. The linking of credit cards with UPI will enable consumers to make small ticket sized payments on credit which will fuel further economic growth. Also UPI123Pay will enable feature phone users to use UPI payment service through IVR, app functionality, missed call based and also proximity sound based payments, thus ensuring that Bharat is not left behind in the overall UPI growth and success story.

Dilip Modi, Founder, Spice Money

It is heartening to see the rising adoption of UPI in India. The efforts of fintech players and the government’s vision and support to create a digital economy have majorly contributed to the success of UPI in India. This is a part of the overall growth story of digital payments in India over the last few years. 

UPI has recorded 6.57 billion (Rs 657 crore) transactions amounting to a whopping Rs 10.72 lakh crore in August 2022. This growth witnessed for UPI payments can be majorly attributed to urban centres. At Spice Money, we have been at the helm of getting digital payment services to the doorsteps of Bharat. With continued support from the government and increased awareness, we hope that along with UPI, other forms of digital payments like AePS witnessing strong growth which is a testament to India's increased adoption of digital payment ecosystem.

Anitha Rangan, Economist, Equirus

UPI is indeed a path breaking initiative of our government which not even developed economies have in place. In fact, many developed countries are looking to emulate this technology. UPI along with dual OTP has been the mainstay of digitalisation and improving the financial reach in a secure and seamless fashion in India. In a country that is vast and diverse, this has clearly been the gamechanger for taking the economy to the next level. While the volumes are an indication it is important to note that the volumes are also matched with the spread and UPI transactions are happening even in small towns. This is a great backbone support for tourism and small business promotion.

It is heartening to note that merchants have adopted UPI so enthusiastically that there are over 5 crore merchants on UPI and 26 crore unique users versus 60 lakh POS (Point of Sale) terminals in use.

In fact Indian government calls UPI a “digital public good” and has recently clarified that Government is funding the maintenance cost of this infrastructure and will continue to do so. This makes it most efficient, seamless and secure mode of payment relative to all existing payment platforms.

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UPI Transactions UPI Payments NPCI Data