UPI transactions touches new high, cross Rs 5 lakh crore in March

• Unified Payments Interface (UPI) emerged as one of the preferred modes of discharging through mobile and crossed Rs5 lakh crore transaction in value in March.
• NPCI disclosed that in March it recorded 2.73 billion UPI transactions, at a value of Rs 5,04,886 crore.
• The mobile transaction is growing at a healthy rate very soon 25% of the Indian population will have a UPI account for digital transactions.

Unified Payments Interface (UPI), one of the most preferred modes of making mobile payments at stores, crossed the 5 lakh crore transaction in value in March, transforming payments habits of customers and touching a new high as digital adoption continues to surge in India.

According to released by NPCI, the payment processing institution that handles the UPI payment across the country, disclosed that in the month of march it saw 2.73 billion UPI transactions, at a value of Rs 5,04,886 crore. In the month other payment mode IMPS (Immediate Payment Service), which also permits the audience to transfer funds to discharge bills, clocked 363.14 million transactions, at a value of Rs 3,27,234.

According to the recent by Credit Suisse, digital modes of payment have become the preferred mode for paying the bill after purchase and have grown 10 times over the last five years. Digital payment platforms have successfully captured a 30 percent share, a total of $450 Billion, with acceptance of over 30 million merchants compared to 5 million who have traditional POS terminals. Over 200 million users in India are now active users of digital payments.

The NPCI in its tweet said that “ Customers have been shifting from traditional payment method to mobile payment wallet. In January the NPCI recorded 2.30 billion transactions, at a value of Rs4,31,181 crore, and transaction count in February fell and  march experienced a surge in the transaction by significant percent with an increase in value, the aggregate value of the transaction in march is Rs 5,04,8686 crore.”

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In January, for example, merchant transactions on UPI touched 1 billion, nearly double the number of transactions that cards (debit and credit) clocked during the same period. The next shot in the arm for UPI is likely to come from standing instructions as more customers use their smartphone payment apps to set auto-debits for bill payments, investments, and subscriptions.

"In the next three-five years, AI and Blockchain will have a huge impact on the way payments are made. In terms of policy, increasing the limit of standing instructions for recurring payments to Rs 5000 is a great move by RBI as 90 percent of payment volumes comes from transactions with a value of less than Rs 5,000," NPCI CEO Dilip Asbe said.

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