The Unified Payments Interface (UPI) transactions touched a record 782 crore in December during the calendar year 2022, amounting to a record high of Rs 12.82 lakh crore. The volume of UPI transactions in December rose 7.12 per cent compared to November, with the value of transactions rising 7.73 per cent.
According to data from the National Payments Corporation of India (NPCI), the volume of transactions jumped 71 per cent year-on-year in December and the value of transactions surged 55 per cent.
In the past two years, the volume and value of UPI transactions have continued to be on an upward trajectory, apart from minor blips during few months due to the pandemic-related restrictions.
UPI processed over 7400 crore transactions, valuing Rs 125.94 lakh crore, in the calendar year 2022. The platform processed over 3800 crore transactions worth Rs 71.54 lakh crore in 2021. So, in a year, the volume of transactions on the platform jumped over 90 per cent and value jumped by 76 per cent.
UPI crossed the first billion transactions in October 2019, almost three years after its launch in 2016. Since then, the incremental billion transactions have come in quickly.
Meanwhile, during July-September 2022, digital payments, including unified payments interface (UPI), debit and credit cards, mobile wallets and prepaid cards, witnessed a total of 23.06 billion transactions aggregating to Rs 38.3 lakh crore. At the top, UPI clocked over 19.65 billion transactions in volume and Rs 32.5 lakh crore in terms of value.
According to reports recently, UPI payment apps like Google Pay, PhonePe and Paytm, among others, are likely to soon impose a limit on the transaction. Currently, there is no volume cap in UPI transactions, and PhonePe, Google Pay and Paytm — command 94.6 per cent of the overall UPI market.
Following this, users may not be able to make unlimited payments via UPI payment apps. The National Payments Corporation of India (NPCI), which operates the UPI digital pipeline, is in discussions with the Reserve Bank about implementing its proposed December 31 deadline for limiting player volume to 30 per cent, according to the reports.
The NPCI proposed a 30 per cent volume cap for third-party app providers (TPAP) in order to avoid concentration risk in November 2022.
A large number of payment platforms are there in India that are using unified payments interface (UPI), including GPay, PhonePe, Paytm and BHIM, and are competitors to each other. In October, transactions through UPI rose 7.7 per cent to 730 crore and the total value stood at more than Rs 12.11 lakh crore. In September, there were 678 crore UPI-led digital transactions worth Rs 11.16 lakh crore.
Four apps — PhonePe, Google Pay and Paytm — command 94.6 per cent of the overall UPI market.
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