Unified Payments Interface (UPI) offers an easy and quick way to conduct financial transactions. The payment system saw a record number of transactions being conducted in the month of December 2024.
As many as 16.73 billion transactions worth Rs 23.25 trillion ($271.96 billion), were conducted according to a report by the India Brand Equity Foundation (IBEF) which cited data from the National Payments Corporation of India (NPCI).
The usage of the payment system in December was the highest since its launch. The Unified Payments Interface (UPI) was launched in India on April 11, 2016, by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI).
In terms of volume, UPI transactions grew by 46 per cent to 172 billion in 2024. On the other hand, in terms of value, UPI transactions witnessed a 35 per cent increase as the total amount of money transacted through the interface grew to Rs. 247 trillion ($2.88 trillion).
A report by the IBEF showed that a rise in person-to-merchant transactions drove the growth in UPI usage in 2024. The daily UPI transactions averaged around 540 million in December growing from 516 million in November.
Other modes of transactions such as Immediate Payment Service (IMPS) and FASTag transactions also witnessed an increase in terms of both volume and value. In terms of volume IMPS transactions grew by 8 per cent to 441 million in December. In terms of value, IMPS transactions worth Rs. 6.02 trillion ($70.42 billion) were conducted in December.
The report said that FASTag transactions grew by 6 per cent to 382 million in December in terms of volume. The value of the transactions grew by 9 per cent to Rs. 6,642 crore ($ 776.90 million).
Aadhaar Enabled Payment System (AePS) transactions witnessed a marginal increase of 1 per cent in volume. The transactions were valued at Rs. 24,020 crore ($ 2.81 billion). According to IBEF’s report, payment systems in India have continued to expand, with notable growth across various modes, especially in terms of daily transaction volumes.
