According to the 2021-22 economic study, the widespread use of the Unified Payment Interface (UPI) for transactions has led to it becoming the only biggest digital payments network in the nation in terms of the number of transactions.
UPI finished the calendar year 2021 with record-breaking transaction volumes and values. As per figures issued by the National Payments Corporation of India, UPI achieved 4.56 billion money transfers worth Rs 8.27 trillion in December.
With UPI payments establishing new milestones every month as digital payments usage grows in the nation, it is fair to anticipate that this main payments system can execute 1 billion transactions per day. Since this milestone could be reached in 10 years with little effort, NPCI, the country’s apex body for digital transactions, has previously stated that it aims to reach the 1 billion transactions per day milestone on UPI within the next 3 – 5 years.
As per Jeffries research, UPI accounted for 50% of digital payments in India in FY22 and is about 4.5x the size of debit card transactions. According to the research, online payments in India are worth $2 trillion each year, with UPI being the main contributor, followed by debit cards and mobile wallets.
Moreover, UPI handled over 24.26 million one-time mandates between April and November 2021. Transactions of Rs 44,381 crore were completed. The transaction limit for these kinds of payments, which was enhanced by the RBI from Rs 1 lakh to Rs 2 lakh in March 2020, was hiked again in December 2021 to Rs 5 lakh.