UPI hits new record with over 14 billion transactions in May

Unified Payments Interface (UPI) has set a new record, processing more than 14 billion transactions worth ₹20.45 lakh crore (₹20.45 trillion) in May, according to the National Payments Corporation of India (NPCI). This marks a 5% increase in transaction volume and a 4% rise in transaction value compared to April.

Last month, UPI experienced a slight decline with transaction volumes dropping by 1% to 13.3 billion from 13.44 billion in March, and the total transaction value falling by 0.7% to ₹19.64 trillion from ₹19.78 trillion. However, May’s figures show a strong recovery, achieving new highs in both volume and value since UPI began in April 2016.

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The number of transactions is expected to grow further as NPCI expands UPI services to more countries. Currently, UPI is available in India, Singapore, Malaysia, UAE, France, Nepal, UK, Mauritius, and Sri Lanka. The Reserve Bank of India (RBI) and NPCI plan to extend UPI’s reach to 20 countries by FY29.

In its annual report, the RBI noted that nearly four out of five digital payments in India during FY24 were made using UPI.

As of April, PhonePe held the largest market share in the UPI ecosystem at 48.87%, followed by Google Pay at 37.5% and Paytm at 8.3%. In terms of transaction value, PhonePe dominated with a 51% share, while Google Pay and Paytm accounted for 35% and 5% respectively. The specific data for May is yet to be released by NPCI.

NPCI is considering reviewing its decision to impose a 30% cap on the market share of UPI apps by the end of 2024.

Meanwhile, major industry players like Adani Group and Reliance Group are preparing to enter the UPI and digital banking space. Reports suggest that Adani Group is seeking a license to operate on UPI, while Jio Financial has announced a new app called JioFinance.