India's Unified Payments Interface (UPI) has reported a remarkable 45% year-on-year growth in transaction volume for July 2024, reaching an impressive 14.44 billion transactions. According to the National Payments Corporation of India (NPCI), the total transaction value also saw a significant 35% increase, totaling Rs 20.64 trillion (US$ 246.51 billion). This marks the third consecutive month in which UPI transaction values have exceeded Rs 20 trillion (US$ 238.86 billion), following Rs 20.07 trillion (US$ 239.70 billion) in June and Rs 20.44 trillion (US$ 244 billion) in May.

Record-Breaking Monthly Transactions

In July, the average daily UPI transaction count was 466 million, amounting to Rs 66,590 crore (US$ 7.95 billion). This reflects a sequential growth of 3.95% in transaction volume and 2.84% in transaction value. For the current financial year (FY25), UPI has recorded 55.66 billion transactions worth Rs 80.79 trillion (US$ 964 billion).

The UPI system has seen a tenfold increase in transaction volume over the past four years, from 12.5 billion transactions in 2019-20 to a staggering 131 billion in 2023-24. This growth signifies that UPI now accounts for 80% of all digital payment volumes in India.

Shift Towards Peer-to-Merchant Transactions

Recent data highlights a notable shift towards peer-to-merchant (P2M) transactions over traditional peer-to-peer (P2P) transactions. This shift indicates a growing preference for UPI in retail and merchant payments, reflecting increased usage and adoption across various segments.

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As of June 2024, the UPI system is supported by 424 million unique users, further underscoring its widespread acceptance and impact on the digital payments landscape. RBI Governor Mr. Shaktikanta Das emphasized that UPI has revolutionized the retail payment experience, making transactions faster and more convenient for users across the country.

Conclusion: A Game-Changer for Digital Payments

The latest UPI data underscores its significant role in driving the growth of digital payments in India. With record-breaking transaction volumes and values, UPI continues to demonstrate its resilience and adaptability in the evolving financial ecosystem. The shift towards P2M transactions and the substantial increase in unique users highlight UPI's transformative impact on both consumer and merchant payment behaviors.

As UPI maintains its rapid growth trajectory, it remains a cornerstone of India's digital payments infrastructure, reinforcing its position as a leading global digital payment system. The continued support from the Reserve Bank of India and ongoing enhancements to the UPI platform are expected to sustain its momentum and further drive financial inclusion across the nation.

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