Unified Payments Interface (UPI) saw a significant surge in December, processing over 16.73 billion transactions, reflecting an 8% increase from November. The rise in volume and value highlights the continued growth of India’s digital payments ecosystem.
UPI’s steady momentum continued into December 2024, with a remarkable 8% surge in transaction volume and nearly an 8% increase in transaction value. The National Payments Corporation of India (NPCI) reported that UPI handled 16.73 billion transactions, amounting to Rs 23.25 lakh crore in value. This compares favorably to November’s figures, where 16.46 billion transactions were recorded, totaling Rs 21.58 lakh crore.
Record Growth in UPI Transactions: 39% Increase in Volume
The December data also showcased UPI’s year-on-year (YoY) growth, reflecting a 39% increase in transaction volume and a 28% rise in transaction value compared to the same period in 2023.
December’s daily transaction count averaged 540 million, with the total value surpassing Rs 74,990 crore. In contrast, November had seen a daily average of 516 million transactions with a value of Rs 71,840 crore. This steady growth trend, observed since October 2024, is indicative of UPI’s growing adoption and the increasing shift towards digital payments in India.
The surge in transactions is no small feat, especially when considering that UPI’s monthly transaction volumes have now crossed 16 billion for three consecutive months. With more consumers relying on UPI for everything from bill payments to peer-to-peer transfers, the platform continues to strengthen its grip on India’s financial landscape.
UPI Market Leaders: PhonePe, Google Pay, and Paytm Dominate
PhonePe remains the dominant player in the UPI market, capturing almost 48% of the total transaction volume. This is followed by Google Pay, which holds a 37% share, and Paytm, which maintains a 7% share. The competitive dynamics between these platforms continue to shape the way Indian consumers engage with digital payments.
Despite the ongoing dominance of these players, the market is set to remain stable for now. The NPCI extended the compliance deadline for Third Party App Providers (TPAPs) exceeding the volume cap in UPI by an additional two years. The new deadline, set for December 31, 2026, means that the existing market leaders will maintain their dominant positions for the foreseeable future.
Interestingly, as part of its efforts to expand UPI’s reach, NPCI recently lifted the user onboarding limit for WhatsApp Pay, opening the doors for its entire user base across India to use UPI services. This move is expected to further fuel UPI’s penetration into India’s already massive digital payments ecosystem.
Global Expansion: UPI Payments Now Accepted in Seven Countries
In an effort to enhance UPI’s global footprint, NPCI has been expanding UPI services beyond India. At present, UPI payments are accepted in seven countries: Bhutan, Mauritius, Nepal, Singapore, Sri Lanka, and France. However, the expansion doesn’t stop there. Media reports suggest that NPCI is working on extending UPI’s services to Qatar, Thailand, and other countries in the Southeast Asian region.
This global outreach is a testament to the increasing relevance and impact of UPI, not just in India but also in neighboring nations and beyond. With cross-border payments becoming more essential, the proliferation of UPI services internationally could pave the way for deeper economic integration and easier financial transactions across borders.
In the coming years, it’s expected that the UPI platform will continue to grow both in terms of domestic adoption and international acceptance. For the millions of people who rely on it every day for their payments, UPI is set to become an even more indispensable part of the financial ecosystem.
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