UPI likely fastest digital product to hit 1 billion transactions-a-month, report claims

Unified Payments Interface or UPI is perhaps the fastest product to hit 1 billion transactions-a-month. Its inception was in August 2016. It recorded a substantial transaction volume of 10.8 billion in 2019, a YoY increase of 188 pct, according to 'the India Digital Payment Report' published by Worldline India.

In terms of value, UPI facilitated transactions worth Rs 18.36 trillion, up 214 pct from 2018 the report said adding that 9 banks were added in UPI ecosystem through the year, bringing the total number of banks providing UPI services to 143 as of December 2019.

Average Ticket Size (INR)
UPI’s Average Ticket Size (ATS) remained around Rs 1600 in 2019 which indicate the rise in number of consumers preferring UPI for making small ticket size transactions, the report said.

To enhance UPI’s adoption among masses, National Payments Corporation of India (NPCI) has also advised that the Regional Rural Banks (RRBs) can participate in UPI as Acquirers, subject to RRB having a mobile banking permission from Reserve Bank of India (RBI) and post fulfilling its necessary certification requirements.

On the other hand, Immediate Payment Service (IMPS) continued its strong growth in 2019, the report further revealed. It recorded 55 pct YoY increase by facilitating about 2.3 billion transactions in volume, it said. It clocked INR 21.8 trillion in terms of value, up 41 pct from 2018. In 2019, it on-boarded 165 banks under its ecosystem bringing the total number of banks providing IMPS services to the customers of 559 banks by end of  2019.

The report further says that India recorded a combined transaction volume of over 20 trillion and combined value of over INR 54 trillion from new retail payment products like debit cards, credit cards, Immediate Payment Services (IMPS) and Unified Payments Interface (UPI), in 2019.

Indian consumers are gradually moving to digital payment modes, the report says adding that there was an on-year increase in adoption of traditional as well as new retail payment products including debit cards, credit cards, IMPS and UPI.

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This annual report takes a look and provides insights on Indian digital transactions in 2019 as well as insights on transactions that were processed in Worldline network. In addition, it also looks at how asset-lite products will transform digital payments in 2020.