NEW DELHI: Unified Payments Interface (UPI) achieved a groundbreaking milestone in October 2024, processing 16.58 billion transactions worth an astounding Rs. 23.49 lakh crore. This represents a 45 per cent year-on-year growth from October 2023, when UPI recorded 1140 crore transactions. Launched in 2016 by the National Payments Corporation of India (NPCI), UPI has transformed India’s payment ecosystem, enabling seamless, secure, and round-the-clock financial transactions.
UPI has been instrumental in India’s journey towards a cashless economy by integrating multiple bank accounts into a single mobile application. It facilitates fund transfers, merchant payments, and peer-to-peer transactions while offering features like scheduled payment requests and QR code integration. Its innovative features, including virtual addresses for secure payments and single-click two-factor authentication, have made it a preferred payment method for millions of users.
UPI’s impact is far-reaching, empowering small businesses, street vendors, and individuals across urban and rural India. The adoption of UPI saw significant acceleration during the Covid-19 pandemic, as people sought contactless payment methods. Features like voice boxes at vendor stalls have further built trust among small merchants, ensuring they can verify transactions effortlessly.
The integration of RuPay credit cards with UPI has added another dimension, allowing users to leverage credit lines for transactions, and enhancing convenience and flexibility.
UPI’s success is not confined to India. It has extended its reach to seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. The platform’s entry into France marked its first step into Europe, facilitating seamless transactions for Indian consumers and businesses abroad.
India’s leadership in digital payments is further underscored by its dominance in global real-time payment transactions, accounting for 49 per cent of the total as per the 2024 ACI Worldwide Report. Prime Minister Narendra Modi has actively advocated for UPI’s adoption within the BRICS bloc, potentially boosting remittance flows and financial inclusion globally.
With 632 banks now connected to the platform, UPI’s growing dominance highlights its critical role in India’s payment ecosystem. The system processed Rs. 23.49 lakh crore in October 2024 alone, marking its unprecedented success in the digital payment landscape.
UPI has revolutionised financial transactions in India, fostering financial inclusion and setting global benchmarks for digital payments. Its seamless, secure, and accessible platform has not only empowered individuals and businesses but also established India as a global leader in digital payment innovation. With its rapid domestic and international growth, UPI continues to shape the future of financial transactions, driving economic opportunities and promoting India’s global financial influence.
