UPI transaction in India doubles in one year
- In March 2021, UPI transactions in the country also showed a 20% jump in count, as compared to February 2021, when overall transactions stood at 2.29 billion.
Bengaluru: Digital payments through Unified Payments Interface (UPI) infrastructure have more than doubled over the last one year, as transactions on the network touched 2.73 billion in March 2021, data from National Payments Corp. of India (NPCI) showed. The transactions had touched 1.25 billion in March 2020.
In March 2021, UPI transactions in the country also showed a 20% jump in count, as compared to February 2021, when overall transactions stood at 2.29 billion. Further, UPI processed more than ₹5 lakh crore in transaction value in March, an 18% rise month-on month.
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March 2021 represents strong growth in UPI volumes, which otherwise slowed down to 1-3% between November 2020 and February 2021. At the onset of the pandemic and change in consumer behaviour towards digital payments, UPI witnessed a double-digit monthly growth in transaction count, through the months of the lockdown last year.
The reason for the slowdown in growth could be attributed to rising transaction failures on the network, due to technical glitches faced by Indian banks, which also led to once market leader Google Pay losing market share.
Google Pay had registered 857.8 million transactions in October 2020 and had reached a peak of 960 million transactions in November, commanding close to 43% market share in UPI payments. The platform has seen a continuous drop in transactions since. It recorded 854.4 million transactions December, 853.5 million in January, and 827.86 million in February.
Last week, NPCI also defined its standard operating procedure on the 30% market cap on Unified Payments Interface (UPI) transactions for third-party app providers (TPAPs).
On crossing the 30%-mark, third-party apps and their partner banks will have to stop onboarding new users. However, NPCI stated that it may offer exemption to players, based on justifications provided.
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Other payment instruments operated by NPCI also saw a rise.
Immediate Payment Service (IMPS) witnessed a rise in transactions to 363.14 million in March 2021, as compared to February when IMPS registered close to 318.79 million transactions in February 2021.
FASTag transactions also grew to 193.21 million in March from 158.96 million in February 2021.
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