UPI transactions dip slightly in April, but see 50% growth year-on-year - CNBC TV18 (2024)

In April, Unified Payments Interface (UPI) transactions experienced a 1% dip month-on-month (MoM). The volume of transactions slipped from 13.44 billion to 13.30 billion, while the transaction value also saw a marginal decline from ₹19.78 lakh crore to ₹19.64 lakh crore during the same period.

However, the number of transactions saw a growth of 50% when compared with April last year, while the total amount of transactions saw 40% growth.

Make seamless payments from your mobile in real-time with UPI.#UPI #DigitalPayments #UPIChalega@GoI_MeitY @_DigitalIndia @dilipasbe @upichalega @dfs @rbi pic.twitter.com/t02TctNEBw

— NPCI (@NPCI_NPCI) May 1, 2024

In March 2024, the volume of transactions had surged by 55% to 13.44 billion, while the value increased by 40% to ₹19.78 lakh crore compared to March 2023.

On the other hand, Immediate Payment Service (IMPS) transactions experienced a decline in volume and value in April compared to March.

Transaction value dropped by 7% to ₹5.92 lakh crore from ₹6.35 lakh crore, with volume decreasing by 5% from 581 million to 550 million transactions.

However, on a year-on-year basis, IMPS transactions exhibited positive growth, with a volume increase of 11% and a value increase of 14%.

UPI's accessibility extends beyond India's borders, with several countries including Sri Lanka, Mauritius, France, UAE, Singapore, Bhutan, and Nepal embracing its utilisation.

On Thursday (May 2), NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), signed an agreement with the Bank of Namibia (BoN) to support them in developing an instant payment system like UPI for Namibia.

Meanwhile, the NPCI is likely to review its decision to implement a 30% cap on the market share of payment players offering UPI services by the end of 2024.

As of now, the deadline to bring this change remains unchanged i.e., December 2024.

In November 2022, a 30% volume cap on third-party app providers was first proposed.

UPI players were requested to restrict their market share to 30% within two years.