India Records Staggering Growth in UPI Transactions, Reaching 131 Billion in FY24

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India’s finance minister, Nirmala Sitharaman, revealed astounding figures regarding the country’s Unified Payments Interface (UPI) transactions during an event at GITAM in Visakhapatnam on Monday.

Record-Breaking Figures

According to Sitharaman, India witnessed an unprecedented surge in UPI transactions during the fiscal year 2024, reaching a monumental 131 billion transactions with a total value of ₹200 trillion.

Finance Minister Nirmala Sitharaman revealed these remarkable statistics during the ‘Viksit Bharat Ambassador’ event at GITAM.

This marks a significant leap from the previous fiscal year, where approximately 83.7 crore transactions worth ₹139 trillion were conducted through UPI, as per data from the National Payments Corporation of India (NPCI).

Rural Adoption of Digital Payments

Sitharaman highlighted the widespread adoption of digital payment technology, even in rural areas of India. Emphasizing that UPI transactions were not limited to corporate giants but included ordinary citizens and sellers, Sitharaman underscored the democratization of digital finance across the nation.

“Ordinary citizens of India are doing these kinds of (UPI) transactions. These are not just Adanis and Ambanis, they are ordinary sellers”, said the Finance Minister.

Market Dynamics and Dominance

PhonePe and Google Pay emerged as dominant players in the UPI market, collectively capturing an impressive 86% share by transaction volume.

However, Paytm Payments Bank, once a major contender, experienced a decline in market share following regulatory restrictions imposed by the Reserve Bank of India (RBI) earlier in the year.

Other players like Cred and the Axis Bank app trailed far behind with minimal market share.

Vision for India’s Future

In her address, Sitharaman reiterated the government’s vision of propelling India towards becoming a developed nation by 2047 and ascending to the third-largest economy globally.

She expressed confidence in the Indian Government’s commitment to combating corruption and ensuring transparent governance, emphasizing that such efforts were essential to realizing India’s economic potential. “Therefore, there is a guarantee being given by Prime Minister Modi that with good administration, clean administration, he will ensure that India will reach the third rank. It is not an arithmetic inevitability”, said Sitharaman.

Unified Payments Interface (UPI)

Unified Payments Interface (UPI) in India has emerged as a game-changer in the realm of digital finance, revolutionizing the way transactions are conducted across the nation.

Launched in 2016 by the National Payments Corporation of India (NPCI), UPI enables seamless real-time payments directly from one bank account to another using a mobile device. With its user-friendly interface and interoperability across various banks and payment service providers, UPI reflects the increasing adoption of digital payment solutions as well as democratization of financial services, as even rural areas in India embrace this innovative technology.

Overseas markets accepting UPI payments include Singapore, Malaysia, UAE, France, Nepal, UK, Mauritius, and Sri Lanka.