UPI transactions hit record high in January

New Delhi: January saw a record-breaking 16.99 billion UPI transactions, valued at over Rs 23.48 lakh crore, the highest monthly figures ever recorded, government data reveals.

In FY 2023-24, India's digital payments sector has witnessed significant growth, with UPI driving the momentum, accounting for 80% of the country's retail payments.

The total transaction volume exceeded 131 billion and the value exceeded Rs 200 lakh crore for the FY 2023-24.

The Ministry of Finance states that the UPI's widespread adoption is due to its user-friendly interface and extensive network of participating banks and fintech platforms, making it the go-to choice for real-time payments for millions of Indians.

As of January, more than 80 UPI apps (bank apps and third-party application providers)and 641 banks are currently live on the UPI ecosystem.

In the first month of FY24-25, Person-to-Merchant (P2M) transactions made up 62.35% of the total UPI volume, while Person-to-Person (P2P) transactions accounted for 37.65%.

In January 2025, Person-to-Merchant (P2M) transactions accounted for 62.35% of overall UPI volume. Notably, 86% of these P2M transactions were valued at Rs 500 or less.

This indicates the trust that UPI enjoys among citizens for making low-value payments, said the ministry.

Cambridge Business School's Professor Carlos Montes says India's Unified Payments Interface (UPI) offers valuable lessons for other countries.

Montes, who is on a tour to India to attend and speak at the NXT event at the Bharat Mandapam on Friday, was briefed on UPI's success and given a presentation on its functioning, achievements, and trends.

UPI's global expansion is underway, enabling seamless cross-border transactions for Indians travelling abroad. Currently, UPI is live in over 7 countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius, allowing Indians to make international payments effortlessly.

(inputs from IANS)