UPI transactions surpass 1,000 crore mark for third consecutive month in October

The growth in UPI's transaction volume and value can be attributed to the escalating digital adoption at both the merchant and customer levels.

Vivek Iyer, Partner at Grant Thornton Bharat, commented on the situation, noting, "UPI value and volumes are at their peak on account of increased digital adoption at two levels - merchants and the customers. The adoption has increased on account of the higher penetration by different UPI-based third-party payment apps that have continually added new customers. The rewards and incentives programs offered by the third-party UPI-based payment apps also entice existing customers to route more transactions through UPI."

The Reserve Bank of India (RBI) has been proactive in introducing a series of measures aimed at boosting the UPI ecosystem's security and fairness. In September, NPCI unveiled a host of innovative features for UPI at the Global Fintech Fest 2023, including instant credit via UPI, UPI Lite X for Offline Payments, Tap and Pay, and Hello UPI.

Additionally, when looking at Immediate Payment Service (IMPS) statistics, there were 49.3 crore transactions, with a total value of ₹5.38 lakh crore.

This reflects a 2% year-on-year (YoY) growth in transaction count and 15% increase in transaction amount. In September, there were 47.3 crore IMPS transactions, totaling ₹5.07 lakh crore in value. August saw 48.9 crore IMPS transactions, with a transaction amount of ₹5.14 lakh crore.