Unified Payments Interface (UPI) transactions continued to grow in May with the platform processing transactions of Rs 10 trillion during the month. In volume terms, transactions were at 5.95 billion during the month, according to data released by the National Payments Corporation of India.
UPI transactions more than doubled on a year-on-year basis, in terms of both volume and value. In May 2021, the value of UPI transactions stood at Rs 4.91 trillion while the number of transactions totalled to 2.54 billion.
On a month-on-month basis, the number of transactions grew by close to 7% while the value rose nearly 6%. The value of such transactions stood at Rs 9.83 trillion in April.
For the previous financial year, the value of UPI transactions was at Rs 83.45 trillion.
UPI continues to dominate daily debit transactions, Nomura Research said in a report earlier this month. Similar spending per transaction in UPI and debit cards, on the back of a strong growth in volumes for UPI, implies that UPI could be eating into the debit card and small-ticket spending pie, the report said.
The Reserve Bank of India’s focus on digital payments and banking will further aid the growth of the UPI platform. In its annual report for FY22, the central bank said it is planning to link UPI to its foreign counterparts. The RBI is already working with the monetary authority of Singapore towards linking UPI with PayNow. The linkage is expected to be completed by the second half of 2022.
NPCI also released data for other payment systems as well. The number of Immediate Payments System (IMPS) transactions in May stood at 484.8 million, compared with 471.6 million a month ago. The value of IMPS transactions in May was at Rs 4.5 trillion, against Rs 4.44 trillion in the previous month.
In May, vehicle owners paid toll of Rs 43.7 billion via Fastag, against Rs 42.2 billion in the previous month. Fastag transactions in May stood at 285 million, compared with 266 million a month ago.