UPI transactions have grown nearly 6.7% from 2.07 Bn in October to 2.21 Bn in November 2020. The payment system, owned by the National Payments Corporation of India (NPCI), processed transactions worth INR 3,90,999 Cr in November compared to INR 3,86,106 Cr in the previous month.
— India Be Safe. India Pay Digital. (@NPCI_NPCI) December 1, 2020
In September, NPCI had recorded 1.8 Bn UPI transactions, noting another 10.3% hike from 1.61 Bn transactions recorded in August 2020. NPCI had launched UPI back in 2016 and it became a popular choice among users for sending and receiving money. While it started off with a meager 9 Mn transactions in July 2016, it crossed the billion mark in October 2019.
Despite a minor road bump that dipped the transactions below the billion mark in April, UPI has maintained its growth and added a billion transactions in a span of year. It is one of the biggest payment systems, which have been driving the growth of digital payments in India.
Earlier in October, the RBI said that digital payments have grown at a compounded annual growth rate (CAGR) of 55% from 593.61 Cr in FY2016 to 3,434.56 Cr in FY2020. During this period, its value has grown from INR 920.38 lakh Cr to INR 1,623.05 lakh Cr, translating into a CAGR of 15.2%.
Meanwhile, a Redseer report has revealed that digital payments will further grow about 2x and touch $60 Tn by 2022 as the Indian economy rebounds after the Covid-19 lockdown. “Driven by a continued rise in private expenditure, with retail consumption at the forefront, and a significant increase in digital maturity of the Indian customers,” the report reads.
The report mentions that mobile payments are likely to outplay other forms of digital payments and grow at a 60% compounded annual growth rate (CAGR) to reach $900 Bn by 2025. The report notes that while there was a 25% fall in the number of digital transactions through UPI and mobile wallets, — from 1.57 Bn in March to 1.18 Bn in April — the numbers have only grown since then.
As per the data revealed by the Reserve Bank of India (RBI) on September 15, a total of 1.66 Bn transactions worth INR 5.99 lakh Cr were done via mobile-based banking and payment application in June which has increased from the transactions that happened in February.