The Financial Express
Transactions on the Unified Payments Interface (UPI) platform rose 54% year-on-year (YoY) to 11.2 billion in November, boosted by strong festival season spending, especially on e-commerce websites.
The volume of transactions surpassed the 11-billion mark in October as well.
“UPI has been at the front and centre of the remarkable ascent of electronic payments, and continues to be the driving force in shaping India’s digital payments landscape,” Harish Prasad, head of banking – India, FIS, said.
According to the Global Payment Report (GPR), the e-commerce market in India is forecast to reach a milestone of $150 billion in value by 2026, with a robust compounded annual growth rate (CAGR) of 16%. Prasad said these trends underscore the pivotal role of the UPI and the dynamism of the e-commerce sector, both of which were amplified during the festival season.
In terms of value, transactions rose 46.1% YoY to Rs 17.4 trillion in November. It had risen nearly 42% YoY to Rs 17.2 trillion in October.
“UPI has received a widespread acceptance from users and merchants as the preferred mode for person-to-merchant (P2M) transactions. The removal of transaction fees for merchants has contributed to this exponential growth,” said Sunil Rongala, senior vice president, head – strategy, innovation and analytics, Worldline India.
Rongala said security, timely payments and ease of making payments are a few other factors that have made UPI a huge success. He expects UPI transactions to hit 20 billion a month in the next 18-24 months.
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