UPI broke records with 14 billion transactions totalling more over Rs 20 trillion in May

The National Payments Corporation of India (NPCI) released data indicating that in May, the Unified Payments Interface (UPI) completed over 14 billion transactions valued at Rs 20.45 trillion, or Rs 20.45 lakh crore.

This represents a new milestone for the API. In May, UPI witnessed a 4% increase in transaction value and a 5% increase in volume over April. Since it started operating in April 2016, UPI has reached a new peak in terms of both volume and value.

Last month, the volume of transactions declined by 1% to 13.3 billion from 13.44 billion in March. The total transaction value in the same period also fell 0.7% to Rs 19.64 trillion from Rs 19.78 trillion.

The transaction count is expected to rise in the coming months as NPCI is expanding UPI services to more countries. Besides India, it is also available in countries such as Singapore, Malaysia, UAE, France, Nepal, UK, Mauritius, and Sri Lanka. Going forward, the Reserve Bank of India along with NPCI have plans to take UPI to 20 countries by FY29.

UPI's scalability and robustness in handling such high transaction volumes showcase India's technological capabilities in the fintech sector. Increased transactions indicate a shift in consumer behavior towards cashless payments, driven by the ease of use and widespread acceptance of UPI.

UPI has the potential to expand beyond India, providing a model for other countries looking to implement efficient and scalable digital payment systems. Continued development of features like recurring payments, credit products, and international remittances can further boost UPI's utility and adoption.

The record-breaking numbers highlight the widespread adoption of digital payments in India, driven by UPI's convenience, speed, and interoperability. The high volume and value of transactions reflect the growing confidence in digital payment systems, contributing to the formalization of the economy and improved financial inclusion.