UPI Will Capture 59% Share Of Digital Payments By 2024; Growing At 440% Per Year!
The online mode of transactions has been favored in recent times; it first started after demonetization was announced and is now being pushed especially as the pandemic asks for social distancing and minimal human contact.
The UPI mode of transactions is especially popular and has seen immense popularity among businesses and customers. UPI has reportedly making a new record every month for the past six months, and this goes for the number of transactions and the amount of the transactions as well.
Read on to find out all the details!
UPI Mode Of Transaction Making New Records Every Month
Unified Payment Interface (UPI) transactions have reached as much as 2,234.16 million in December, whereas the value of transactions has been ?4,16,176 crore.
However, back in April, the number of transactions was impacted greatly, probably because of the lockdown imposed nationwide. As per the data from the National Payments Corporation of India, the number of transactions fell to 999.57 million in April. The NPCI owns and operated the UPI. The total value of transactions amounted to Rs. 1,51,141 crore in April, as per the data.
However, by July, the UPI mode of transactions regained popularity and started making new high months every month.
UPI is very likely to continue growing in the upcoming years, as the trend suggests. A report, The Indian Payments Handbook, by PwC India, more than half of the total digital transactions by volume will be carried out on UPI within the next four fiscal years.
UPI’s Market Share To Grow To 59% By 2024-2025
UPI’s market share was 17% in 2018-19 and the expected growth by the year 2024-25 is as much as 59%.
As of now, 40% of the transactions in India by volume are conducted through debit cards. However, this would reduce to just 11% in the future. Ever since its launch in 2016, UPI has had a compound annual growth rate (CAGR) of 414% till the financial year 2020. Also, it is expected to grow with the help of strong regulatory measures, innovative solution offerings by fintech companies, recurring payments, and new use cases.
PwC’s report states that UPI captures 59% of the payment market share by volume and the projected transactions are expected to be at 99 billion by volume and Rs. 128 trillion by value.