UPI records 6 Bn Transactions worth INR 10.63 Lakh Cr in July 2022

UPI payments

Unified Payments Interface (UPI) transactions crossed the 6 billion mark in July 2022, with the National Payments Corporation of India (NPCI) processing 628 Cr transactions worth 10.63 Lakh Cr during the month.

Both transaction count and volume picked up after a lacklustre June, recording month-on-month (month-on-month) growth of 4.8% and 7.7%, respectively. The previous month (June 2022) saw a slight decline in the number of UPI transactions compared to May 2022. The value of UPI transactions in 2021 exceeded 73 Lakh Cr (approx. $970 billion), a year-on-year increase of over 110% from transactions worth 33, 87 Lakh Cr in 2020.

However, the transaction volume in the first seven months of 2022 has already crossed 92% of UPI transaction volume in 2021.

The total transaction volume in 2022 so far is INR 67.21 billion ($850 billion). In July 2022, NPCI also confirmed plans to start operational linking of RuPay credit cards with UPI by September 2022.

The onset of UPI linking with credit cards is likely to impact the average ticket size of UPI transactions, which is currently around INR 2,050 per transaction (in 2022). On the other hand, the Reserve Bank of India (RBI) recorded credit card transactions worth INR 87,682 in July 2022. So the average value of a credit card transaction in the country is around INR 4,740.

Thus, at the current rate, linking UPI with credit cards has the potential to increase the average ticket size of UPI payments by INR 3,300. UPI is currently the most popular digital payment system in India with connections to 330 banks led by State Bank of India (SBI) (162.5 Cr transactions), followed by HDFC Bank (52.9 Cr transactions) and Bank Of Baroda (38, 3 Cr transaction).

NPCI was established in 2008 as an umbrella organization for the operation of retail payment and settlement systems in India. Launched in 2016, UPI also operates other payment features such as RuPay Card, Instant Payment Service (IMPS), Bharat Money Interface (BHIM), BHIM Aadhaar, Fastag and Bharat BillPay. The latest offerings include UPI123Pay, a real-time wallet-style payment system for mainstream phones.

NPCI has also signed a memorandum of understanding (MoU) with France’s Lyra Network to accept UPI and RuPay cards in the country. NPCI is thus now going international to introduce a domestic payment system to countries like Nepal, UAE, Japan and China, apart from France.

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