UPI Transactions Cross 10.5 Bn Mark, Experience Slight Dip In September

Recent data from the National Payments Corporation of India (NPCI) shows a slight decline in Unified Payment Interface (UPI) transactions for the month of September. 

After making history in August by surpassing the 10 billion transaction mark for the first time, UPI recorded 10.56 billion transactions in September, a marginal 0.2 per cent decrease from the previous month.

Despite the dip in transaction volume, UPI's value remained relatively stable, edging up by 0.3 per cent to Rs 15.8 trillion compared to Rs 15.76 trillion in August. These figures represent a substantial 56 per cent increase in transaction volume and a notable 41 per cent surge in transaction value when compared to September of the previous year.

Immediate Payment Service (IMPS) transactions, a key player in India's digital payment ecosystem, saw a decline of 3.3 per cent in volume and a 1.4 per cent drop in value from August to September. However, it's worth noting that when compared to the same month in the previous year, IMPS transactions showed resilience with a 2 per cent increase in volume and a significant 12 per cent rise in value.

Fasttag transactions, which are integral to toll payments and related services, experienced a 3 per cent drop in volume, amounting to 299 million transactions in September, compared to 308 million in September 2022. The value of these transactions also decreased by 2 per cent from Rs 5,175 crore in August to Rs 5,089 crore in September. Nevertheless, this segment exhibited strong year-on-year growth, with a 15 per cent increase in volume and an impressive 20 per cent increase in value.

The Aadhaar Enabled Payment System (AePS), which relies on biometric authentication for financial transactions, recorded a 6 per cent decline in volume, dropping from 107 million transactions in August to 101 million in September. In terms of value, AePS transactions decreased by 6 per cent to Rs 25,984 crore in September compared to Rs 27,500 crore in August. These figures also reflected a year-on-year decline of 1.9 per cent in volume and a 2.6 per cent decrease in value.