UPI transactions ended 2020 on a higher note. The worth for digital transactions carried out by way of UPI stormed previous the Rs 4-lakh-crore mark in December, according to the newest UPI information from the National Payments Corporation of India (NPCI). 2.23 billion transactions worth Rs 4.16 lakh crore had been recorded in December, up from 2.21 billion transactions involving Rs 3.91 lakh crore in November. The year-on-year development in volume stood at 70 per cent from 1.30 billion transactions even though the worth of UPI transactions elevated 105 per cent from 2.02 lakh crore in December 2019. Moreover, the quantity of banks live on the UPI platform elevated from 143 to 207 for the duration of the 12-month period.
Among the major UPI players, Google Pay and PhonePe had with each other cornered more than 82 per cent of the market place by volume and more than 86 per cent by worth in November. While Google Pay processed 960.02 million transactions involving Rs 1.61 lakh crore, PhonePe, saw 868.4 million transactions worth Rs 1.75 lakh crore. Paytm had processed 260 million payments.
The transaction volume and worth have apparently scaled up quicker for the duration of the Covid and lockdown phases as folks switched to digital mode to stay away from money usage. The volume jumped by 908.47 million transactions for the duration of the 10-month period from 1.32 billion transactions in February 2020, according to the evaluation of NPCI information. However, in comparison, related volume development of 908.47 million transactions, just before Covid, took 17 months (from September 2018) to attain the February 2020 level.
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UPI is presently the most significant amongst the NPCI operated systems like NACH, IMPS, AEPS, BBPS, RuPay, and so forth. As of October FY21, out of 3.39 billion retail transactions on all NPCI platforms, 2.07 billion transactions had been recorded on UPI followed by 340.03 million transactions with respect to NFS inter-bank ATM money withdrawals, 318.97 million transactions on the immediate payment inter-bank electronic funds transfer program — Immediate Payment Service (IMPS), and 245.55 million transactions on the National Automated Clearing House (NACH), according to the NPCI information.
Importantly, the Reserve Bank of India had on Friday launched a ‘composite Digital Payments Index (DPI)’ to measure the extent of digitisation of payments in India primarily based on parameters like payment enablers, payment infrastructure – demand-side and provide-side elements, payment efficiency, and customer centricity, according to the RBI.