Unified Payments Interface (UPI) accounted for nearly four out of five digital payments in India during the financial year 2024 (FY24), according to the Reserve Bank of India’s (RBI) annual report. UPI’s share of the total digital payment volume surged to 79.7% in FY24, up from 73.4% in FY23, highlighting its rapid adoption and widespread use. This represents a dramatic increase from FY20, when UPI’s share was just 36.8%.
The overall volume of digital payments in FY24 reached an impressive 164.4 billion transactions, marking a 44% year-on-year growth from 113.9 billion transactions in FY23. Comparatively, in FY20, there were only 34 billion UPI transactions, underscoring the platform’s exponential growth.
The RBI attributed this growth to the Payments Infrastructure Development Fund (PIDF), which has significantly enhanced digital payment infrastructure. The fund has subsidized the deployment of Point of Sale (PoS) terminals, mobile PoS terminals, and interoperable Quick Response (QR) codes. Consequently, the number of PoS terminals rose by 14.3% year-on-year to 8.9 million in FY24, while Bharat QR (BQR) codes increased by 16.1% to 6.2 million. UPI QR codes saw a substantial 35% increase, reaching 346 million codes by the end of FY24.
Looking ahead, the RBI, in collaboration with NPCI International Payments Ltd. (NIPL), aims to expand UPI’s reach globally. They plan to introduce UPI in 20 countries by 2024-25, with full implementation expected by 2028-29.
In contrast to the booming digital payment ecosystem, debit card transactions have seen a significant decline. The RBI reported a 33% year-on-year drop in debit card transactions, with only 2.28 billion transactions in FY24, down from 3.41 billion in FY23. This figure is nearly half of the 5.06 billion transactions recorded in FY20, marking a five-year low.
Additionally, the RBI approved 22 new online payment aggregators, further bolstering the digital payment infrastructure in the country.
This data underscores the transformative impact of UPI on India’s digital payment landscape, as it continues to outpace traditional methods and drives the country towards a more cashless economy.
