UPI Payments: Payments through UPI still remain the choice of customers. Transactions through Unified Payments Interface (UPI) crossed Rs 20 lakh crore in December for the tenth consecutive month. Last month in December, transactions worth Rs 23.25 lakh crore took place through UPI, which was 27.5 percent more as compared to the month of November. In the month of December, transactions through UPI increased as compared to the month of November but remained less than the month of October because transactions worth Rs 23.5 lakh crore were made through UPI in October.
Transaction volume reaches record high
In December, transactions worth Rs 23.25 lakh crore were made through UPI, which was more than the transactions in November and less than the transactions in October, but in terms of volume, it reached a record high in December. In the month of December, transaction volume through UPI jumped by 39 percent on annual basis to reach Rs 1673 crore. However, this speed of growth remained less than 40 percent in the first seven months of this financial year.
Average transactions also increased
Talking about daily volume, 54 crore transactions were done every day on the network of more than 600 banks and transactions worth Rs 74,990 crore were done through UPI. The value per transaction has increased and reached Rs 1400 per transaction in the December quarter from Rs 1393 in the September quarter.
NPCI also announced some important decisions along with the figures.
National Payments Corporation of India (NPCI) on December 31 gave a big relief to big UPI apps like PhonePe and GooglePe and postponed the market cap deadline by two years to December 2026. After its implementation, PhonePe and GooglePe will have to lose their dominance in the market. NPCI had presented a proposal about four years ago in November 2020, according to which a maximum cap of 30 percent was imposed on the number of transactions through UPI, that is, no single digital payment firm can have more than 30 percent market share. It was to be implemented from the end of 2024 but according to the statement of NPCI, now it will come into effect from the end of December 2026.
Currently, Google Pay and Walmart’s PhonePe are used the most. According to NPCI’s November data, PhonePe’s share in UPI payments was 47.8 percent and Google Pay’s 37 percent. In November, both of them processed 1310 crore transactions. Apart from this, NPCI also removed the ban on adding new users to WhatsApp’s UPI product.
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