The dataset contains year, month and payment application-wise UPI Apps Transaction Statistics like Customer Initiated Transactions, B2C Transactions, B2B Transactions and On-us Transactions Note: 1) Unified Payments Interface(UPI) is an instant real-time payment system developed by National Payments Corporation of India. The interface facilitates inter-bank peer-to-peer and person-to-merchant transactions 2) From January 2021 onwards, ‚On-us Transactions‚ in UPI that are not processed and settled through the UPI Central System is shown under ‚ On-us Transactions column 3) Apps which has volume less than 10,000 is included under‚ Other Apps. 4) App volume in table is basis the Payer App logic, i.e the financial transaction is attributed to the PSP in UPI on the Payer's side. 5) BHIM Volume is inclusive of *99# volume. 6) For WhatsApp, Maximum registered user base of hundred (100) million in UPI

In financial year 2023, there were over 84 billion UPI transactions worth about 139 trillion Indian rupees across India. The number of transactions was estimated to rise up to over 456 billions in financial year 2028 in the country. Unified Payments Interface (UPI) was introduced by National Payments Corporation of India (NPCI) in 2016 and facilitates inter-bank transactions.

The volume of UPI-based digital payments in the south Asian country of India was over 131 billion in financial year 2024. This was a significant increase from the previous financial year's value of around 83 billion. Increased penetration of smart service applications and digital technologies are the primary contributors to the enormous growth in digital payments in the country.

The data shows monthly volume and value of UPI Transactions and volume and value of P2P and P2M transactions monthly.
Note:- (1) Data is measured over January 2020 to April 2022
(2)Unified Payments Interface(UPI) is an instant real-time payment system developed by National Payments Corporation of India. The interface facilitates inter-bank peer-to-peer and person-to-merchant transactions.
(3)P2P stands for peer-to-peer and means that you're sending money directly to another person.
(4) P2M payments refer to payments made to merchants through UPI.

As of June 2023, the unified payment interface (UPI) transactions in India were calculated to be worth over 14.7 trillion Indian rupees. Although this was a slight decrease compared to the previous month, the value of UPI transactions had grown extensively from less than 550 billion Indian rupees in August 2018.

UPI is a product of the National Payments Corporation of India (NPCI) and was launched in 2016. It allows users of payment service providers like PhonePe or GooglePay to use NPCI as switch to connect with banks and transfer money. It is more user-friendly than older transaction modes such as IMPS.

In June 2023, nearly 9.3 billion transactions were carried out through the Unified payment interface in India. This was a slight increase from the previous month and moreover, the volume of UPI transactions had extensively grown from around 300 million transactions in August 2018.

UPI is a product of the National Payments Corporation of India (NPCI) and was launched in 2016. It allows users of payment service providers like PhonePe or GooglePay to use NPCI as switch to connect with banks and transfer money. It is more user-friendly than older transaction modes such as IMPS.

High Frequency Indicator: The dataset contains year- and month-wise compiled data from the year 2022 to till date on high, medium and other merchant category wise classification of Business firms, entities, etc. which are using UPI transactions.

Note: The high category merchant category wise classification (MCC) is applied to business entities which are top 10 entities in terms of volume of UPI transactions performed. The medium MCC is applied to next 10 entities after first 10 entities and the all other MCC classification is applied to other entities which fall next to medium UPI transaction entities. The MCC status of each business firm changes every month depending on volume of UPI transactions performed in each month.

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India Unified Payments Interface Market Size 2024-2028

The India unified payments interface (UPI) market size is forecast to increase by USD 699.02 billion at a CAGR of 205.6% between 2023 and 2028.

The market is experiencing significant growth due to its instant and seamless money transfer process. This feature is driving the market, as more consumers prefer contactless transactions for their daily financial needs. Furthermore, the increasing use of mobile apps for shopping transactions is boosting the adoption of UPI. However, the market also faces challenges such as UPI payment frauds, which require strong data security measures to ensure user confidence. To mitigate these risks, market participants are investing in advanced security technologies and regulatory compliance. Overall, the UPI market is poised for growth, offering opportunities for innovation and expansion.

What will be the size of the India Unified Payments Interface (Upi) Market during the forecast period?

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The market represents a significant shift in mobile payment systems, enabling users to transfer money between bank accounts using a smartphone application. UPI facilitates seamless settlement through push and pull transactions, surpassing the need for physical cash and traditional over-the-counter payments. This mobile-first payment solution offers enhanced security with multi-factor authentication, safeguarding sensitive information during transactions. UPI supports recurring payments for utility bills, school fees, and other regular expenses, making financial management more efficient. While credit and debit cards and net banking continue to be popular options, UPI's convenience and instant payment processing have gained traction.
Furthermore, with UPI, users can send and receive money using a Virtual ID or account details, eliminating the need for sharing personal identification. The increasing unbanked population In the US also benefits from this innovative payment solution, expanding financial inclusion. Overall, the UPI market is poised for growth, offering a more convenient and secure alternative to traditional payment methods.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Money transfers
  Bill payments
  Point of sale
  Others


Type

  P2P
  P2M


Geography

  India

By Application Insights

The money transfers segment is estimated to witness significant growth during the forecast period.

The increasing demand for instant money transfer in India is expected to increase the demand for UPI from end-users during the forecast period. The users of UPI can transfer money through their mobile devices round the clock, 24x7 and 365 days. In addition, UPI is a fast, hassle-free, and cheapest way of money transfer, which the user can do anytime from anywhere. In addition, UPI eliminates the risk of carrying cash. Moreover, money transfer/transaction can be initiated from any bank's UPI application. Also, it only requires the virtual ID of the payee to transfer the money. The process of transferring money by UPI is quite simple as there is no need for pre-addition/approval of the beneficiary; the transfer is made to the beneficiary's virtual ID. Furthermore, a single UPI application can be used for different bank accounts. The user simply needs to link their bank accounts to their UPI-based application. Also, there is no charge for transferring money to the beneficiary account via UPI. Hence, owing to these factors, the demand for UPI for transferring money is expected to increase during the forecast period.

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The money transfers segment was valued at USD 303.00 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of India Unified Payments Interface (UPI) Market?

Instant and smooth money transfer process is the key driver of the market.

The market represents a significant advancement in mobile payment systems, enabling seamless transactions between bank accounts through a smartphone application. UPI facilitates both push and pull transactions, allowing users to send and receive money instantly, without the need for physical cash or account details. This real-time gross settlement system supports transaction authentication through various methods, ensuring sensitive i

India Payment Systems: Volume: Payment Transactions: NPCI Operated: Unified Payments Interface (UPI) data was reported at 54.931 Unit mn in 28 Aug 2020. This records an increase from the previous number of 54.474 Unit mn for 27 Aug 2020. India Payment Systems: Volume: Payment Transactions: NPCI Operated: Unified Payments Interface (UPI) data is updated daily, averaging 47.981 Unit mn from Jun 2020 (Median) to 28 Aug 2020, with 89 observations. The data reached an all-time high of 57.827 Unit mn in 11 Aug 2020 and a record low of 28.900 Unit mn in 13 Jun 2020. India Payment Systems: Volume: Payment Transactions: NPCI Operated: Unified Payments Interface (UPI) data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI001: Payment Systems: Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) Operated: Daily.

High Frequency Indicator: The dataset contains year- and month-wise compiled data from the year 2020 to till date on the number of digital payment transactions done by location and through through the systems such as Aadhar Enabled Payment System (AEPS), Cheque Truncation System (CTS), National Automated Clearing System (NACH), National Electronic Toll Collection (NETC), Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS), National Electronic Fund Transactions (NEFT) and other modes of payment

Notes: i) The data published is only for RBI, NPCI-operated systems and Card Networks (domestic Off-Us transactions). ii) RTGS data includes only Customer and Interbank transactions. iii) AePS data under Payment transactions include AePS Fund Transfers and BHIM Aadhaar Pay transactions. iv) UPI data includes BHIM-UPI and USSD transactions. v) NACH Credit data includes Aadhaar Payment Bridge System (APBS) transactions. vi) NETC figures are for FASTags linked with all instruments and hence would be different from the monthly bulletin which only includes NETC linked to bank accounts vii) BBPS data is not included in the monthly bulletin as the data is captured under other systems. viii) Data on Prepaid cards are only those that are processed by card networks. ix) Blanks in the dataset represent holiday

The value of UPI-based digital payments in the south Asian country of India was over 200 trillion Indian rupees in financial year 2024. This was a strong increase from the previous financial year's value of over 139 trillion Indian rupees. Increased penetration of smart service applications and digital technologies are the primary contributors to the enormous growth in digital payments in the country.

BHIM was launched in December 2016, as evidenced by the first data point showing just 0.04 million transactions valued at 1.85 crores. After that, the usage of BHIM increased rapidly. In March 2024, the platform processed 29.87 million transactions worth ₹ 8,319.37 crores, representing an astronomical increase in both volume and value over these 7 years. One of the most striking aspects of BHIM’s growth is the continuous increase in participating banks. From 31 banks in December 2016, the number grew to 421 banks by March 2024.

India NPCI: Retail Payments: Value: Financial: Unified Payments Interface (UPI) data was reported at 2,905.379 INR bn in Jul 2020. This records an increase from the previous number of 2,618.350 INR bn for Jun 2020. India NPCI: Retail Payments: Value: Financial: Unified Payments Interface (UPI) data is updated monthly, averaging 370.613 INR bn from Apr 2016 (Median) to Jul 2020, with 52 observations. The data reached an all-time high of 2,905.379 INR bn in Jul 2020 and a record low of 0.000 INR bn in Jun 2016. India NPCI: Retail Payments: Value: Financial: Unified Payments Interface (UPI) data remains active status in CEIC and is reported by National Payments Corporation of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI029: Retail Payments: National Payments Corporation of India Operated.

The data shows Transaction value and volume over BHIM App developed by NPCI on UPI interface.

High Frequency Indicator: The dataset contains year-, month- and bank-wise compiled data from the year 2022 to till date on the volume and performance of Unified Payment Interface (UPI) Payer and Payee Payment Service Provider (PSP), along with percentage of transactions which have been approved, business declined (BD) and technical declined (TD)

Notes:

1. Business Declines (BD) are declined transactions due to a customer entering an invalid pin, incorrect beneficiary account etc. or due to other business reasons such as exceeding per transaction limit, exceeding permitted count of transactions per day, exceeding amount limit for the day etc.
2. Technical Declines (TD) transactions are those transactions are declined due to any technical reasons such as bank ID is empty or not in correct format or exception code not in Database or not in correct format, etc
3. Payer PSP is a system bank can onboard a customer, create his/ her UPI ID, create device binding which is used as a first factor of Authentication. Using this function, a customer can enter their UPI PIN to approve a financial transaction or non financial request, wherever necessary.
4. Payee PSP is a system where a bank can onboard a customer/merchant and allow them to receive money on the basis basis allocated UPI ID or raise a Collect request. It is also known as beneficiary PSP/resolving PSP.

High Frequency Indicator: The dataset contains year- and month-wise compiled data from the year 2008 to till date on the number of digital payment transactions done through the systems such as Mobile, Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS), Unified Payment Interface (UPI), Bharat Interface for Money (BHIM), National Electronic Fund Transactions (NEFT), Bharat Bill Pay and Internet Banking

India NPCI: Retail Payments: Volume: Financial: UPI: Unstructured Supplementary Service Data 2.0 (USSD 2.0) data was reported at 0.091 Unit mn in Jul 2020. This records an increase from the previous number of 0.085 Unit mn for Jun 2020. India NPCI: Retail Payments: Volume: Financial: UPI: Unstructured Supplementary Service Data 2.0 (USSD 2.0) data is updated monthly, averaging 0.123 Unit mn from Dec 2016 (Median) to Jul 2020, with 44 observations. The data reached an all-time high of 0.310 Unit mn in Jan 2017 and a record low of 0.025 Unit mn in Dec 2016. India NPCI: Retail Payments: Volume: Financial: UPI: Unstructured Supplementary Service Data 2.0 (USSD 2.0) data remains active status in CEIC and is reported by National Payments Corporation of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI029: Retail Payments: National Payments Corporation of India Operated.

Dataset

This dataset was created by Ishita Roy

Released under Apache 2.0

Contents

The data shows the transaction statistics of BHIM , Off-Us,On-Us and total transaction under AEPS in monthly distribution periods .
Note:- (1)Aadhaar Enabled Payment System (AEPS) is a payment service that allows a bank customer to use Aadhaar as his/her identity to access his/her Aadhaar enabled bank account and perform basic banking transactions like balance enquiry, cash withdrawal, remittances through a Business Correspondent. (2)Off-Us Transaction: where the issuing bank and acquiring bank are different entities. (3)On-Us Transaction: where the issuing bank and the acquiring bank are the same entity (4)BHIM is an Indian mobile payment app developed by the National Payments Corporation of India, based on the Unified Payments Interface. Launched on 30 December 2016, it is intended to facilitate e-payments directly through banks and encourage cashless transactions

In June 2023, the ICICI Bank acted as the remitter bank for nearly 461 million UPI-transactions in India. This figure saw a singificant increase since April 2020.

Unified Payments Interface (UPI) is a product of the National Payments Corporation of India (NPCI) and was launched in 2016. It allows users of payment service providers like PhonePe or GooglePay to use NPCI as switch to connect with banks and transfer money. It is more user-friendly than older transaction modes such as IMPS.