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India’s Unified Payments Interface (UPI) has seen a remarkable surge, accounting for 83% of the country’s total digital payment transactions in 2024, up from 34% in 2019, according to the Reserve Bank of India’s (RBI) payment system report. This marks a major shift in the digital payments landscape.
In contrast, the share of other payment methods like National Electronic Funds Transfer (NEFT), Real-Time Gross Settlement (RTGS), Immediate Payment Service (IMPS), and credit/debit cards declined from 66% in 2019 to just 17% in 2024.
India recorded a total of 208.5 billion digital payment transactions in 2024, driven largely by the growing adoption of UPI. Between 2019 and 2024, the volume of UPI Person-to-Merchant (P2M) payments outpaced Person-to-Person (P2P) transactions, with P2M growing at a compound annual growth rate (CAGR) of 99% for transactions under Rs 500, and 109% for transactions exceeding Rs 2,000. In comparison, UPI P2P grew at a CAGR of 56% and 57%, respectively.
Additionally, UPI Lite, a low-value transaction method introduced by the National Payments Corporation of India (NPCI), saw significant growth. By December 2024, UPI Lite recorded 2.04 million daily transactions, valued at Rs 20.02 crore. The average ticket size of UPI Lite transactions also saw a 13% year-on-year increase, rising from Rs 87 in December 2023 to Rs 98 in December 2024.
Meanwhile, the use of prepaid payment instruments (PPIs), such as digital wallets, declined by 12.3% in volume, dropping to 3.45 billion transactions in H2 2024 from 3.93 billion in H2 2023.
Also Read: UPI Records Over 15,500 Cr Transactions in 2024, Strengthening India’s Digital Payments Revolution