Akshata Sharma
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India's Unified Payments Interface (UPI) set a new record in May by processing 14.04 billion transactions worth Rs 20.45 lakh crore or Rs 20.45 trillion, according to data from the National Payments Corporation of India (NPCI).
This marks a 5% increase in transaction volume and a 4% rise in value compared to April, making May the highest month in terms of both volume and value since UPI began operations in April 2016.
Other payment systems also saw notable changes in May. The Immediate Payment Service (IMPS) transactions increased marginally by 1.45% in volume to 558 million and by 2.36% in value to Rs 6.06 trillion.
FASTag transactions rose by 6% in volume to 347 million and by 4% in value to Rs 5,908 crore.
Conversely, Aadhaar Enabled Payment System (AePS) transactions declined by 4% in volume to 90 million and by 7% in value to Rs 23,417 crore.
UPI international expansion
The NPCI and the Reserve Bank of India (RBI) are actively working on expanding UPI's reach both domestically and internationally.
UPI services are currently available in countries such as Singapore, Malaysia, UAE, France, Nepal, the UK, Mauritius, and Sri Lanka, with plans to expand to 20 countries by FY29.
Additionally, nearly four out of five digital payments in India were conducted via UPI in FY24. Notably, The RBI has been engaging with key stakeholders to discuss strategies for scaling up UPI infrastructure and integrating more users into the digital payment system.
PhonePe continues to dominate the UPI market
As of April, PhonePe held the largest market share in the UPI ecosystem with 48.87%, followed by Google Pay at 37.5% and Paytm at 8.3%. In terms of transaction value, PhonePe accounted for nearly 51%, Google Pay for 35%, and Paytm for 5%.
The NPCI is considering reviewing the decision to implement a 30% cap on the market share of UPI apps by the end of 2024.
Major industry players like Adani Group and Reliance Group are also planning to enter the UPI and digital banking space, with Adani Group seeking a license to operate on UPI and Jio Financial, launching a new app called JioFinance.
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