Online funds in India: How UPI is altering the face of digital transactions

Online funds in India: The Unified Payments Interface (UPI) makes digital cost as simple as sending a textual content or scanning a QR code. Launched in 2016, the platform accounted for 73% of all non-cash retail funds in India within the yr to March.

According to the Reserve Bank of India’s (RBI), 30 May annual report, and UPI transaction information from the National Payments Corp. of India (NPCI), combination UPI transactions stood at ₹139.2 trillion in FY23.

Growing at a gradual tempo, UPI transactions are more likely to attain 1 billion per day by 2026-27, accounting for 90 p.c of the retail digital funds within the nation, mentioned the PwC report titled titled “The Indian Payments Handbook – 2022-27”.

The widespread adoption of UPI in not simply tier 1 cities but additionally tier 2 & 3 cities in only a matter of seven years, coupled with the demand for UPI in different international locations is a testomony to it being one of the vital superior cost programs immediately.

“What’s equally thrilling and vital to notice is that alongside making the ecosystem of transacting less complicated and extra handy, UPI can be enabling a number of related monetary providers similar to expense monitoring, budgeting, saving, investing, and extra,” said Satyajeet Kunjeer, Founder and CEO, Deciml.

Over the past decade, India has witnessed a significant transformation in the banking and finance space, including the emergence of neo-digital banks, novel payment platforms, and the rise of fintech as a whole

India is expected to cross 10 billion UPI transactions in June, experts told Livemint.

“Digital payments, led by UPI, have become the favored transaction method. In 2022 alone, there were 74 billion transactions, and we are now on the brink of an unprecedented milestone: the possibility of surpassing 10 billion UPI transactions in the month of June alone,” mentioned Karthik Thenkarai, Co-founder and Director of Paycorp.io 

This surge in transactions signifies elevated spending and a outstanding shift in direction of digital adoption by shoppers, changing the earlier reliance on cash-based transactions. Hence, this landmark in UPI transactions is certainly a welcome signal for an advanced digital India, added Karthik Thenkarai.

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Updated: 20 Jun 2023, 01:33 PM IST