India’s digital payments landscape continues to soar, with the Unified Payments Interface (UPI) setting a new record in October. The National Payments Corporation of India (NPCI) reported an astounding 16.58 billion transactions, totaling a massive Rs 23.50 lakh crore. This represents a significant 45 percent increase compared to the same month last year, highlighting the growing reliance on UPI for everyday transactions.
The surge in UPI activity is largely attributed to the festive season, which typically sees a spike in consumer spending. As Indians celebrated major festivals like Diwali and Dussehra, UPI emerged as the preferred mode of payment for online shopping, bill payments, and even offline purchases.
Leading the charge in the UPI ecosystem are three prominent banks: State Bank of India (SBI), HDFC Bank, and YES Bank. These institutions consistently facilitate a substantial volume of UPI transactions, underscoring their dominance in the digital payments space.
Looking at the broader trends, UPI’s popularity has been steadily rising in recent months. September saw 15.04 billion transactions, amounting to Rs 20.64 lakh crore, while August recorded 14.96 billion transactions worth Rs 20.61 lakh crore. October’s record-breaking performance signifies a continuation of this upward trend.
The average daily transaction volume in October reached an impressive 535 million, with the average daily transaction amount exceeding Rs 75,801 crore. This demonstrates the increasing frequency and value of UPI transactions, solidifying its position as the dominant force in India’s digital payments landscape.
While UPI continues to gain momentum, other payment systems also experienced mixed results. FASTag, the toll payment solution from NPCI, witnessed a busy month with 345 transactions, marking an 8 percent increase from the previous year. However, the Immediate Payment Service (IMPS) encountered a slight setback, reporting 467 million transactions, a 5 percent drop compared to last year, despite an increase from September’s figures.
On a positive note, the Aadhaar-enabled payment system (AePS) saw a significant boost, with monthly transactions surging 26 percent year-on-year to reach 126 million. This indicates the growing adoption of Aadhaar-based payments, particularly in rural areas where access to traditional banking services may be limited.
Overall, India’s digital payments ecosystem is thriving, driven by the widespread adoption and convenience of UPI. As the country embraces digital solutions, the future of payments in India seems poised for further growth and innovation.
