The total volume of transactions for Unified Payments Interface (UPI) in India has crossed $100 billion for the first time.
Data published by the National Payments Corporation of India (NPCI) reveals that in October 2021, the value of UPI transactions hit Rs 7.71 lakh crore, or $103.2 billion.
The total volume of transactions done during this month was 4.2 billion – up from 3.6 billion transactions in September 2021.
This marked a 15 percent month on month rise in the total volume of UPI transactions. The net value rose by 18.5 percent – up from Rs 6.54 lakh crore ($87.1 billion) last month.
The volume and value of UPI transactions in October 2021 were both all-time high records for UPI in India so far. This also marks a steady growth in UPI of late, with August registering 3.55 billion transactions amounting to Rs 6.39 lakh crore ($85.6 billion).
NPCI says that October 2021 has represented in UPI transactions doubling in value and volume, year on year (YoY). The rise in UPI transactions this year is likely owing to an increasing amount of online sales due to the festive period in India.
However, this is likely not the only factor. The overall industry gradually recovering from the effects of the Covid-19 pandemic has also likely contributed to a steady rise in total volume of UPI transactions, with NPCI data revealing a rise of almost 79 percent since January 2021 – up from Rs 4.31 lakh crore.
The NPCI has also stated that FASTag transaction value has also hit an all time high, hitting 214.2 million transactions valued at Rs 3,357 crore in October 2021. The growth here is also likely due to Covid-19 travel restrictions easing ahead of this festive season, as recreational travels increased.
Going forward, instruments such as the UPI auto-pay feature, aimed for transactions valued under Rs 5,000, are expected to contribute to growth in transaction values and volumes in future. What remains to be seen is if transaction volumes witness major drops as the festive season recedes, and the overall year on year growth in UPI transactions in January 2022 will give further insight into the net growth in adoption of the online payment method – once the peak flattens out.