In September 2024, Unified Payment Interface (UPI) transactions in India witnessed a 0.5% increase, rising from US$ 14.96 billion in August to an impressive US$ 15.04 billion. This growth signifies the highest volume of transactions recorded since UPI's inception in April 2016. Notably, daily transactions surged past 501 million, accumulating a total transaction value of Rs. 68,800 crore (US$ 8.25 billion). In contrast, the month of August recorded 483 million transactions with a total value of Rs. 66,475 crore (US$ 7.97 billion).

The year-on-year growth of UPI volume stands at an impressive 42%, while the transaction value has increased by 31%. This remarkable growth underscores UPI's integral role in transforming digital transactions in India. According to Mr. Sunil Rongala, Senior Vice President at Worldline India, this surge is largely attributed to Person to Merchant (P2M) transactions, highlighting a significant rise in micro-transactions.

Trends in Other Payment Systems

In contrast to UPI's growth, transactions through the Immediate Payment Service (IMPS) experienced a decline, falling 5% in volume to 430 million transactions, and a 2% decrease in value to Rs. 5.65 trillion (US$ 67.73 billion). The dip in IMPS usage indicates a shifting preference towards UPI for daily transactions.

Similarly, FASTag transactions saw a 3% decrease in volume, dropping to 318 million, although the transaction value slightly increased to Rs. 5,620 crore (US$ 673.70 million). On the other hand, the Aadhaar Enabled Payment System (AePS) maintained a steady volume of 100 million transactions; however, the value experienced a 2% decline to Rs. 24,143 crore (US$ 2.89 billion).

These statistics paint a clear picture of the evolving digital payment landscape in India, with UPI emerging as the preferred method for a wide range of transactions. As more users embrace UPI for both personal and merchant transactions, its growth trajectory appears poised to continue.

In conclusion, the data from September 2024 reinforces UPI's position as a dominant force in India's digital payment ecosystem, providing insights into changing consumer behavior and the increasing acceptance of digital payment methods. As the landscape continues to evolve, monitoring these trends will be essential for understanding the future of digital transactions in India.

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