UPI Transaction Volume And Value Achieved All-Time High Range

Boost in UPI payments

UPI payments in India have ticked over 3.65 billion transactions in volume and breached Rs. 6.5 trillion in terms of value. In October, UPI volume and value achieved all-time high transactions of 4 billion and Rs. 7.71 trillion respectively, the above-mentioned report said. In Q3 2021, UPI recorded a 103% increase in volume and a close to 100% increase in value as compared with Q3 2020. In September 2021, out of total UPI volumes, 54% of transactions were P2P (Person-to-Person) while 46% were P2M (Person-to Merchant). This data shows how the UPI payment option has bridged the gap between P2P and P2M transactions.

Banks connecting to UPI

In India, 30 banks connected to the UPI ecosystem in Q3 2021 bringing the total number of banks providing UPI services to 259 as of September 2021. 'India Digital Payments Report' mentioned, "Out of which NPCI's BHIM App was available for customers of 202 banks. The number of BHIM app downloads stood over 185 million as of October 29, 2021. State Bank of India, HDFC Bank, Bank of Baroda, ICICI Bank, and Axis Bank were the top UPI Remitter banks in September 2021 while Paytm Payments Bank, State Bank of India, YES Bank, ICICI Bank, and Axis Bank were the top beneficiary banks w.r.t UPI volumes."

Payments via mobile app

Payments via mobile phone have increased significantly, in the recent past in India. The report mentioned that, in Q3 2021, mobile app-based transactions have recorded a 32% growth in volume, while its value witnessed over 21% jump against the previous quarter, i.e. Q2 2021. Among it, 91% of mobile transactions comprised of inter-bank transactions while 9% accounted for intra-bank transactions. In terms of value, 80% of mobile transactions comprised of interbank transactions while 20% accounted for intra-bank transactions.

Internet payment

Internet payment is an essential part of the Indian economy now. In Q3 2021, net banking or internet-based transactions has seen more than a 21% increase in volume and 19% in value against the previous quarter, i.e. Q2 2021. Inter-bank and intra-bank transactions volume of Internet Payments channels were 81% and 19% respectively, while the value of Inter-bank accounted for 56% and intra-bank transactions were 44%.

Customers generally prefer mobile apps for small ticket size transactions and prefer net banking or browser-based channels for high ticket size transactions. With consumers now embracing online payments, the trend is likely to only increase.