UPI drives digital payment growth in India, reaching 83 per cent share in 2024: RBI report

UPI's dominance in India's digital payments continues to soar, accounting for 83% of the market share in 2024.

UPI drives digital payment growth in India, reaching 83 percent share in 2024: RBI Report anr

New Delhi: According to the RBI's payment system report, the share of Unified Payments Interface (UPI) in India's digital payments has surged from 34% in 2019 to a remarkable 83% in 2024, reflecting a robust compound annual growth rate (CAGR) of 74% over the past five years. Meanwhile, the share of other payment methods, such as RTGS, NEFT, IMPS, and credit and debit cards, has dropped from 66% to 17% in the same period.

The report highlights that UPI has been the key driver of digital payment growth in India, owing to its convenience and user-friendly nature. On a larger scale, the volume of UPI transactions has risen from 375 crore in 2018 to 17,221 crore in 2024, while the total transaction value has surged from Rs 5.86 lakh crore in 2018 to Rs 246.83 lakh crore in 2024.

The report reveals that UPI's volume and value have experienced a five-year CAGR of 89.3% and 86.5%, respectively. Both P2P (person-to-person) and P2M (person-to-merchant) transactions benefit from UPI's secure, real-time payment features, simplifying financial exchanges for individuals and businesses alike. 
Since 2023, UPI P2M transaction volumes have surpassed those of P2P transactions, though P2P transactions still hold a higher value compared to P2M transactions.

In 2024, India achieved 208.5 billion digital payment transactions. UPI P2M transactions under Rs 500 saw a remarkable CAGR of 99% between 2019 and 2024, while UPI P2P transactions grew at a slower pace of 56%. For transactions exceeding Rs 2,000, UPI P2M experienced an impressive CAGR of 109%, compared to a 57% growth rate for UPI P2P during the same period.

In December 2024, UPI Lite, the National Payments Corporation of India's (NPCI) payment method for low-value transactions, processed 2.04 million transactions daily, totaling Rs 20.02 crore in value.

“When Paytm and PhonePe introduced UPI Lite on February 15, 2023, and May 2, 2023, respectively, a sustained increase in UPI Lite payment volumes and values was observed,” the RBI report observes.

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