India's Unified Payments Interface marked a milestone by swiftly adding a billion transactions in just two months, catapulting the overall tally to 11 billion, as revealed in the Reserve Bank of India's latest monthly bulletin.
This surge in transactions stands out as the fastest addition of a billion transactions in UPI's history, fueled significantly by the festive fervour during this period.
According to the RBI, the festive season played a pivotal role in propelling digital payments to new heights in October 2023, showcasing a robust expansion. Year-on-year growth across major payment modes notably outpaced the preceding month, painting a vivid picture of India's burgeoning digital economy.
The RBI's bulletin highlighted the adoption of the Initial Public Offering facility through UPI, nearly doubling its mandates in October 2023 compared to the same period last year. Additionally, credit cards continued their upward trajectory, buoyed by incentives like cashback, reward points, contactless features, and the integration of UPI-linked credit cards.
Earlier reports by global payments service provider Worldline had also emphasized the exponential growth of UPI transactions, surging by an impressive 62% in the first half of 2023 compared to the corresponding period in the previous year.
The surge in UPI transactions is not an isolated trend. The 'India Digital Payments Report for H1 2023' indicated a substantial rise, showcasing a meteoric growth from 151 million in January 2018 to 9.3 billion in June 2023. Notably, Person-to-Merchant (P2M) transactions accounted for over half of these transactions, marking a significant shift in consumer behaviour and preferences.
Moreover, to ensure a structured growth trajectory in cross-border payments, the RBI has introduced regulations designating entities engaged in payment and settlement for cross-border export/import transactions as "Payment Aggregators – Cross Border (PA-CB)" under the Payment and Settlement Systems Act, 2007.
The rapid rise in digital transactions, particularly via UPI, underscores the increasing reliance and preference for convenient, secure, and efficient payment methods, paving the way for further innovations in India's evolving digital financial landscape.
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