Value of UPI transactions crosses ₹8 lakh crore in December

The Unified Payments Interface (UPI) clocked ₹8.26 lakh crore worth of transactions in December, data from the National Payments Corporation of India (NPCI) show. Transaction volumes also hit a peak of 456 crore during the month.

For the year, UPI saw 3,874 crore transactions, up 105 per cent from 1,887 crore in 2020. The value of these transactions was ₹71.46 lakh crore, up more than 130 per cent from ₹31 lakh crore in the previous year, the data show.

Easing of COVID-19 restrictions and upbeat sentiment led to increased purchases, both offline and online.

Also read: RBI proposes plan to make UPI payments simpler for consumers

But with the Omicron variant pushing up daily infections and states bringing back curbs, UPI numbers will be closely watched in the coming months.

After its launch in 2016, UPI’s monthly transaction values took four years to breach the ₹3 lakh crore-mark in August 2020. Fifteen months on, the number has more than doubled.

UPI’s growth is expected to continue as digital transactions continue to rise. According to estimates by research firm Jefferies, in the financial year 2022, India will see $2.16 trillion worth of digital payments. UPI is expected to make up close to 50 per cent of that, followed by Immediate Payment Service (IMPS) at 25 per cent.