UPI Transactions Crossed the Mark of 730 Cr in Oct 2022, Grew 73% Y-o-Y

UPI Transaction Growth in Oct 2022 - Paytm for Business

The flagship digital payments platform in India, Unified Payments Interface (UPI) processed 7.3 billion transactions in October 2022. This is a record-high volume since the inception of this platform in 2016. Also, this huge volume of UPI transactions amounts to Rs. 12.11 trillion.

When compared with year-on-year terms, these numbers reflect a 73% growth in the volume of transactions while there is a 57% growth in the transaction value, as per the latest data released by the National Payments Corporation of India (NPCI). 

In the previous month of September, the corresponding numbers stood at 678 crores UPI transactions worth Rs. 11.16 trillion. 

What might have caused the surge in UPI transactions?

The surge in online shopping during the festive season around Diwali this year can be considered a significant driver of the growth in UPI transactions in Oct 2022. The spending in this festive season could be expected to reach new records as Indian households prepared for a restriction-free Diwali post pandemic. On one hand, a rise in footfall in the stores and local markets could be seen. On the other hand, there was a spike in online shopping around festive deals across platforms made consumers save more as they spent. 

After two seasons of muted festive celebrations, consumers seemed to have opened their wallets considerably as reflected in the UPI transactions.

The journey that started from 1 billion UPI transactions

After its launch in 2016, UPI took the pace towards and reached the goal of 1 billion transactions in 2019. Surprisingly, exponential growth in the volume of transactions followed thereafter, making the next billion transactions come in within a year in October 2020. The next ten months that followed made the UPI transactions grow to over 3 billion per month. The trajectory took up from 3 billion monthly UPI transactions to 4 billion in the next three months and it has continued till now.

The pandemic then further accelerated UPI adoption in the country, making it the most preferred payment option in the country. 

In the current financial year, UPI has processed transactions worth Rs. 75 trillion. This is much higher than the 22.28 billion transactions processed through UPI in 2021. 

What about P2M and P2P transactions? 

The overall UPI growth includes both Peer-to-Merchants (P2M) and Peer-to-Peer (P2P) transactions, with the former overtaking the latter in terms of volume. This is expected to grow further with the linking of RuPay credit cards to UPI to allow consumers to pay merchants using their credit cards via UPI.

Previously, there were speculations that the growth in UPI transactions and value will be impacted by the introduction of UPI transaction charges by the Reserve Bank of India. However, such speculations were put to rest after the government iterated that UPI is for public goods and it is to be continued without levying any charges. 

The road ahead

The current numbers for UPI transactions in Oct 2022 is a step forward towards the government’s plan to process 1 billion transactions per day. If you want to start accepting UPI payments for your business, Paytm’s wide range of payment products can make things easier.

 

Switch to Paytm for Business

 

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