UPI recorded 586 Cr transactions in June 2022 as opposed to 595 Cr in May 2022 - recording a month-on-month (MoM) decline of 1.5%
In May 2022, the transaction volume grew by 5.9% while the same fell by 2.5% MoM from INR 10.41 Lakh Cr to INR 10.14 Lakh Cr in June 2022
Besides February 2022, this is only the second time UPI numbers have fallen MoM in CY22
UPI payments have largely remained unaffected by the RBI guidelines and the global economic scenario. As of June 2022 alone, NPCI processed 586 Cr transactions worth INR 10.14 Lakh Cr.
While there was a minor decline in June numbers, compared to May 2022, the payment processing tech platform is making splashes across the world, and across policies. For instance, in June 2022, NPCI International signed a memorandum of understanding (MoU) with Lyra Network of France to accept UPI and RuPay Cards in the country.
Besides France, NPCI International has previously tied up with several institutions in Nepal, the UAE, Japan and China. Now, RBI has outlined that the NPCI will be working on establishing UPI as a channel for making cross-border remittances.
In June 2022, RBI also announced that it would allow users to link their credit cards with UPI starting with RuPay cards. The move may lead to a rise in credit card transactions as well as further expand the use of UPI.
Additionally, data shows that presently the average ticket size of debit card-enabled UPI transactions is around INR 1,730 per transaction while that of a credit card transaction is around INR 4,000.
With INR 1.1 Lakh Cr worth of credit card transactions in June 2022 alone, the linking move will easily take the average ticket size of payments via UPI to INR 3,000.
Despite the slightly declined performance of UPI, the first half of 2022 has alone recorded 83% of the transaction volume of 2021.
In May 2022 alone, UPI recorded nearly 6 Bn transactions worth $134.3 Bn (INR 10.4 Lakh Cr) – growing 6.6% month-on-month (MoM) from April 2022. Besides February 2022 when UPI transactions fell by 2% MoM, June 2022 is only the second time UPI numbers have fallen MoM in CY22.
UPI is currently the most popular digital payment system in India. It has 330 banks linked to it. While the numbers for banking transactions on UPI in June 2022 are not out yet, in May 2022, the State Bank of India (SBI) was leading the segment by processing about 165 Cr transactions.
It was followed by HDFC Bank with 53.2 Cr transactions and Bank Of Baroda with 38.7 Cr. Union Bank recorded 37 Cr transactions, ICICI Bank 34.2 Cr and Paytm Payments Bank recorded 32.3 Cr transactions. These transactions signify the usage of @bankupi handles including @oksbi, @okhdfcbank and more.
