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UPI Breaks Its Own Record with Highest Transactions
This February, Unified Payments Interface or UPI has set a new record in terms of the number of transactions done in a single month. The interface was launched in 2016 to support the digital economy and reduce the use of hard cash in the market.
UPI is run by the National Payments Corporation of India (NPCI). In a tweet, NPCI announced on Monday that the total value of transactions done through UPI has reached the mark of Rs 2,21,995 crore in last February.
This is not the first major milestone achieved by the interface. In 2019, UPI became the most preferred mode of payment in terms of volume. In October 2019 alone, more than one billion transactions were done through the interface.
Just after 3 months, the interface achieved another new milestone in terms of value. In January 2020, transactions of a total value of Rs 2 lakh crore were done.
UPI proved most helpful after the Prime Minister Narendra Modi announced demonetization of Rs 500 and 1000 notes on November 8, 2016. After the move, Paytm emerged as a sole contender in the digital transactions market.
Right now, Paytm, Google Pay and PhonePe amount for more than 90% of the total digital transactions done in India. The government owned BHIM UPI is nowhere to be seen in the race.
Accessing the rise in UPI transactions, the American company of online payment systems, Paypal, is planning to launch its own UPI payment service in India. Other big names like Amazon, Whatsapp and Xiaomi have already started their digital payment services.
While the UPI payment method is on a rise, other payment methods like IMPS (Immediate Payment Service) or AePS (Aadhaar-Enabled Payment System) are seeing a stark decline in terms of payment volumes.
The IMPS transactions in the country saw a decline of 4.5 per cent in a single month. In January 2020, the total IMPS transactions counted for 259.53 million or 25.95 crores (in terms of payment volumes), while in February it got reduced to 247.8 million or 24.78 crores. In terms of total monetary value, IMPS got reduced from Rs 2.16 lakh crore in January to Rs 2.14 lakh crore in February. The AePS transactions also saw a fall of 4.3 per cent in the month of February. In January, the total number of AePS transactions was 225.5 million. While in February, it got reduced to 216 million.
The NETC Fastag is another form of digital transaction that may contribute to the fluctuating digital economy. In February, NETC Fastag achieved the milestone of Rs 100 million by making transactions of Rs 110.1 million in a single month.