India’s UPI Transactions Surge 56%
Unified Payment Interface (UPI) transactions in India have recorded a significant increase of 56% between July and December 2023, according to a recently released report by the central government. The volume of transactions has risen drastically from 42.1 billion to 65.7 billion in the latter half of the year 2022. With the increased transaction counts, the Indian government estimated the value as INR 99.68 Lakh Crores totalling an all-round 44% surge.
UPI’s role in boosting Indian financial economy
The UPI is a convenient and easy method for subscribers to make all payments through their mobile phone. It allows quick transactions with free money movement between concerned bank accounts. UPI account holders can perform financial transactions with ease by installing the respective app on their mobile phones. Long term financial stability including easy access to banking colutions is some of the well known highlights of UPI system.
Government initiatives for UPI Growth
The Government of India introduced many incentive led schemes for Rupay debit cards and BHIM UPI transactions. It designed an ‘Enhanced Payment Acceptance Infrastructure system’ to implement advisories. Alongside, banks were also pressed in duty for meeting digital payment targets.
Impact of UPI on E-Commerce and Online Retail Industries
UPI has been implemented across industry sectors and verticals on a magnificent scale over the last few financial years. It has completely revolutionized the retail digital payment space accelerating increased growth trends in the digital payment industry. India’s financial inclusion is a by-product of demonetization and Digital India initiatives by the Central Government.
A UPI led economy has marked users to conveniently perform peer-to-peer payments, pay their monthly bills and do online shopping without any hassles. With just a smart phone in hand, users are able to do instant payments and act as service providers for portals such as Paytm. UPI has made an overall impact on fintech industries, small and medium enterprises, start-ups, businesses and consumers.
