UPI Transactions Reach New Heights in May, Reflecting Government’s Push for Digital Payments
In May, Unified Payment Interface (UPI) transactions achieved a remarkable milestone, with a total value of Rs 14.3 trillion and a volume of 9.41 billion. This represents a 2% increase in value (compared to Rs 14.07 trillion in April) and a 6% increase in volume (compared to 8.89 billion in April).
Data from the National Payments Corporation of India (NPCI) reveals that approximately Rs 3.96 trillion worth of transactions took place during the last ten days of May. In comparison to May of the previous financial year (2022-23), transaction volume witnessed a substantial surge of 58%, while the value surged by 37%. Notably, this surge coincides with the government’s efforts to digitize tax collection across various sectors. In March 2023, the figures stood at 8.68 billion transactions with a value of Rs 14.1 trillion.
Meanwhile, Immediate Payment Service (IMPS) transactions experienced a modest increase of around 1% to reach Rs 5.26 trillion, as compared to Rs 5.21 trillion in April. Concurrently, the volume of IMPS transactions marginally rose to 500 million in May, compared to 496 million in April. In March 2023, the numbers were recorded at 497 million transactions amounting to Rs 5.46 trillion. May’s statistics demonstrate a 3% growth in volume and a 16% growth in value concerning IMPS, when compared to May 2022.
Regarding FASTag transactions, May witnessed a 10% surge in volume, rising from 305 million transactions in April to 335 million transactions. Furthermore, the value of FASTag transactions rose by 6%, reaching Rs 5,437 crore in May, as opposed to Rs 5,149 crore in April. This segment exhibited a notable 17% growth in volume and a substantial 24% growth in value compared to April 2022. In March 2023, the corresponding figures were 306.3 million transactions with a value of Rs 5,067 crore.
However, the Aadhaar Enabled Payment System (AePS) experienced a decline of 2.35% in volume, recording 99.6 million transactions in May, compared to 102 million in April. In terms of value, AePS transactions amounted to Rs 28,037 crore in May 2023, marking a 5.4% decrease from Rs 29,649 crore in April. The current month’s figures were notably lower than those in March 2023, which accounted for 109.7 million transactions with a value of Rs 30,541 crore. Year-on-year, AePS numbers saw a decline of 9% in volume and 8% in value.
The surge in UPI transactions signifies the growing popularity and acceptance of digital payment methods in India. It aligns with the government’s aim to promote a cashless economy and enhance tax collection through digital means. The growth observed in IMPS and FASTag transactions further underscores the increasing reliance on digital payment systems across the country. While AePS experienced a slight decline, it remains a crucial component of the digital payment ecosystem, warranting attention and potential strategies for improvement.
