In October 2024, India’s Unified Payments Interface (UPI) reached a new high, with 16.58 billion transactions worth a record Rs 23.5 trillion. This remarkable growth was primarily driven by a festive season surge and a significant increase in person-to-merchant payments, demonstrating UPI’s expanding role in retail and digital transactions.
This latest monthly figure marks a 10% increase in transaction volume and a 14% rise in value over September’s record. Daily UPI volumes averaged over 535 million transactions valued at around Rs 75,801 crore. Compared to October 2023, UPI volumes saw a 45% year-on-year rise, with a 37% growth in transaction value. This trend aligns with India’s digitalization momentum, spurred by widespread smartphone use, rural internet connectivity, and a shift toward cashless payments.
UPI and Financial Inclusion
With UPI’s accessibility and ease of use, even rural regions and low-income demographics are increasingly embracing the system. Financial inclusion initiatives, such as linking UPI with Aadhaar and facilitating micro-transactions, have brought millions of unbanked individuals into the formal financial system. Additionally, small businesses have benefited, as UPI enables low-cost, immediate transactions without intermediaries.
Economic Impact and Future Prospects
UPI’s growth strengthens India’s fintech sector and reflects a stable, cashless economy where digital payments can be made instantaneously. The National Payments Corporation of India (NPCI) is expanding UPI globally, aiming to connect with international payment systems in Southeast Asia and the Middle East. This could make UPI a vital component in cross-border payments, amplifying India’s financial influence globally.
