Government-run Unified Payments Interface (UPI) has achieved a new milestone by processing 1.3 billion transactions in February 2020, its highest ever number of transactions ever since its inception in 2016.
Government-run Unified Payments Interface (UPI) has achieved a new milestone by processing 1.3 billion transactions in February 2020, its highest ever number of transactions ever since its inception in 2016. The interface processed transaction value of Rs 2,21,995 crore in the last month, National Payments Corporation of India, which owns and runs UPI, said in a tweet on Monday. The interface has also gained the status of most preferred mode of payment in terms of volume in 2019. In October 2019, the interface had for the first time achieved the milestone of crossing 1 billion transactions in a month and in January 2020, it breached Rs 2 lakh crore mark by value.
The country had seen a massive stride in digital payments after Prime Minister Narendra Modi’s demonetisation move. With a lesser availability of cash, people moved to platforms such as Paytm and Google Pay to make digital payments. Also, these two players and PhonePe emerged as the biggest beneficiaries and now they dominate the UPI space as most of the transactions are done via these platforms. In fact, about 90% of digital transactions are made via these platforms. On the other hand, government-run BHIM has not been able to script the success that private players managed. Other third-party apps such as Amazon Pay, FreeCharge, and MobiKwik are also behind in the UPI race.
India has made Rs 3,742 crore worth digital transactions from 1 April 2019 to date, according to government portal DigiDhan. According to the same portal, two states viz Haryana and Andhra Pradesh are the frontrunners in using digital payments with these states reporting the highest number of transactions on per capita basis. On the other hand, almost all of the North Eastern states such as Assam, Andhra Pradesh, Mizoram and Nagaland, among others, have the lowest number of per capita digital transactions.