The digital payment system Unified Payments Interface, or UPI, exceeded 1 billion transactions in the first 15 days of October, shows RBI estimates for selected payment systems. The digital payment platform owned by NCPI is likely to handle over 2 billion transactions per month, which it has never achieved since its inception in 2016.
This will be double increase from the same period last year for UPI, which first crossed the milestone of 1 billion a month in October last year. It’s worth noting that UPI recorded a billion transactions for the first time in 15 days.
According to RBI, UPI recorded 1,013 million or 1 billion in transactions worth Rs 191,986.9 or Rs 1.91 trillion between October 1-15. Last month, it recorded the highest transaction volume on record at 1.8 billion, worth 3.29 trillion rupees.
April was the only month in which UPI’s transaction volume fell below 1 billion in the last year (October 2019 to September 2020). UPI recovered in May and grew in both volume and value.
The ongoing holiday season and discounts offered by several e-commerce players including Flipkart and Amazon could boost transactions even further in the second half of this month.
According to the latest data from Sensor Tower, Google Pay was the world’s most downloaded fintech app in September.
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From India, PhonePe, Paytm and SBI YONO also made it to the top 10, ranking 4th, 6th and 10th respectively. Google Pay has been downloaded over 12 million times in the last month, of which over 80% were installed from India.
PhonePe, Paytm and SBI YONO downloads were 6.9 million, 3.9 million and 3.1 million, respectively. A separate RBI report also shows that digital or contactless payments grew 135.4% from 14,590 million in fiscal 2018 to 34,345 million in fiscal 20.
The transaction includes RTGS, UPI, NEFT, AePS and IMPS. Among them, UPI recorded the highest sales volume in the 20 financial year – 12,518.6 million or 12.5 billion.
Industry experts tracking the space claim UPI could cross 2 billion transactions as a significant portion of shoppers will use the payment interface to shop in e-commerce. Google Pay, PhonePe, Amazon Pay, and Paytm are also offering discounts on Amazon and Flipkart during holiday sales.
Since the spread of the Covid-19 pandemic, consumers are switching to contactless payment methods, and UPI has become one of the most popular methods. The fear of contracting a physical currency virus has also helped UPI-enabled apps grow over the past six months.