In a testament to the rapid digitization of financial transactions in India, Unified Payment Interface (UPI) transactions have witnessed a remarkable 57% rise in volume and a 44% rise in value during the Financial Year 2023-24, compared to the previous year. March 2024 alone saw a 55% increase in volume, totaling 13.44 billion transactions, and a 40% rise in value, reaching Rs 19.78 trillion compared to March 2023.
This surge in UPI transactions has marked a historic milestone, crossing the 100 billion mark for the first time and closing at 131 billion transactions in a financial year, compared to 84 billion in 2022-23. The total value of UPI transactions in the fiscal year 2023-24 touched an impressive Rs 199.89 trillion, a substantial increase from Rs 139.1 trillion in the previous year.
Sunil Rongala, Senior Vice President and Head of Strategy, Innovation & Analytics at Worldline India, commented on the growth of UPI transactions, noting a significant 56% year-on-year increase in volume and a 43% rise in value. He highlighted the trend of a decreasing Average Ticket Size (ATS), indicating a higher utilization of UPI for smaller transactions. In March 2024, the ATS for UPI transactions was recorded at Rs 1,471, down from Rs 1,623 in March 2023.
Alongside UPI, Immediate Payment Service (IMPS) transactions also saw substantial growth, posting a 17% increase in volume to 581 million transactions and a 16% rise in value to Rs 6.35 trillion in March 2024. For the entire financial year, IMPS transactions grew by 9% to 5,999 million transactions compared to 5,510 million in 2022-23. The value of IMPS transactions in the financial year 2023-24 stood at Rs 64.93 trillion, up 17% from the previous year’s Rs 55.42 trillion.
Additionally, FASTag transactions recorded an 11% increase in volume to 339 million transactions and a 17% rise in value to Rs 5,939 crore in March 2024. This growth trend continued from February 2024, which saw 323 million transactions valued at Rs 5,582 crore, and January 2024 with 331 million transactions valued at Rs 5,560 crore.
However, the Aadhaar Enabled Payment System (AePS) experienced a slight decline, with a 1% decrease in transactions to 108 million and an 8% dip in value to Rs 27,996 crore in March 2024. This decline was observed compared to January and February 2024, where AePS transactions were at 86 million and 83 million respectively in volume, and Rs 25,057 crore and Rs 22,007 crore respectively in value.
