In the calendar year 2023, transactions on the Unified Payments Interface (UPI) platform exceeded the 100 billion mark, reaching approximately 118 billion, according to data from the National Payments Corporation of India (NPCI). According to Money Control reports, this signifies a remarkable 60 per cent growth compared to the 74 billion UPI transactions recorded in 2022.
The UPI platform achieved a significant milestone in August 2023 by exceeding 10 billion transactions in a month for the first time, maintaining this momentum in the subsequent months. In December, UPI logged 12 billion transactions, amounting to a cumulative value of Rs 18.23 lakh crore.
The total value of UPI transactions in 2023 reached around Rs 182 lakh crore, marking a 44 per cent increase from Rs 126 lakh crore in 2022.
According to NPCI data, the daily UPI transactions in December averaged around 387 million. With a growth rate of 60 per cent, UPI is poised to surpass Mastercard's daily transaction volume of 440 million sometime this year. Visa, the world's largest card network, processes an average of 750 million transactions per day.
Despite having approximately 9.6 crore credit cards in India, the value of transactions on this platform is approximately Rs 1.6 lakh crore, which is less than a tenth of the monthly UPI transactions. India boasts a user base of over 300 million UPI payment users. The rising popularity of Rupay credit cards, which can be linked to UPI accounts, is notable among banks and users.
The scalability of NPCI's technology stack architecture, which governs the mobile payments system, allows for infinite scalability. The organization's focus on the network effect of innovations enables the introduction of features that are highly sought after by customers and partners alike.