Economic Survey 2022-23: UPI Accounts For 52% Of Total Financial Digital Transactions In FY22

The Unified Payment Interface (UPI) accounted for 52% of the total 8,840 Cr financial digital transactions in the financial year 2021-22 (FY22), as per India’s Economic Survey 2022-23 report. 

“On average, between FY19-22 (calendar year), growth in UPI-based transactions in value and volume terms have been 121% and 115%, respectively,” stated the report.

As per a recent statement by Finance Minister Nirmala Sitharaman, the total digital payments transactions registered a year-on-year 59% (YoY) growth to 8,840 Cr in FY22 from 5,554 Cr in FY21. 

In fact, continuing the growth in digital payments, UPI touched its highest-ever mark with 782 Cr transactions worth INR 12.8 Lakh Cr in December 2022. UPI has also processed 2,922 Cr contactless merchants’ transactions with a total value of over INR 21.7 Lakh Cr till December 2022 of the current fiscal year.

As per India’s latest economic survey report, more than 23 Cr UPI QRs have been deployed in the market for accepting merchant payments in just five years, from only 25 Lakh devices that were accepting merchant payments earlier. 

It must be noted that in recent days, steps taken towards the opening up of UPI payments in international markets including Singapore, UAE, France, the Netherlands, among others is also enabling this growth.

“Initiative towards the discussion on cross-border remittances will help reduce the cost incurred and procedures involved towards money transfer at present by the migrant workers. The smooth transfer of money will increase the total value of remittances, increasing their impact on economic development,” the survey report said.

Several nations have displayed an inclination towards establishing a ‘real-time payment system’ or ‘domestic card scheme’ inspired by the exemplary innovations by the National Payments Corporation of India (NPCI) in the country in the form of UPI, the report added further.

Besides, it also emphasised that tech companies are increasingly leveraging the power of UPI to expand the digital ecosystem, which has led to a significant acceleration in the pace of financial inclusion. 

“UPI has opened up many opportunities for startups and ecommerce players to develop innovative solutions that elevate the customer experience. The open systems have enabled global players like Google, WhatsApp, Walmart, True Caller, Amazon, Uber etc., to provide UPI services,” it added.

Union Minister of Electronics and IT Ashwini Vaishnaw said in the Google For India event last month that the transactions taking place on the UPI platform are worth 55% of India’s gross domestic product (GDP).