UPI Transactions Reach Record High in December with 16.73 Billion Transactions

UPI Transactions Reach Record High in December with 16.73 Billion Transactions

The Unified Payments Interface (UPI) has achieved a remarkable milestone, with UPI transactions reaching an all-time high of 16.73 billion in December 2024, marking an 8.08% increase compared to 15.48 billion transactions in the previous month. This surge in UPI activity is indicative of the growing adoption of digital payments in India, solidifying UPI’s position as a critical tool in the country’s financial ecosystem.

The December figures also surpassed October’s transaction volume of 16.58 billion, which had already demonstrated a strong 10% month-on-month (MoM) growth. While December’s performance saw a modest 0.9% increase over October’s transactions, it highlighted the consistent upward trajectory of UPI usage, showcasing a steady rise in digital payment adoption across the country.

The growth in transaction volume is also reflected in the total transaction value, with UPI transactions for December 2024 reaching INR 23.25 lakh crore, an impressive 7.9% growth from INR 21.55 lakh crore in November. This growth in transaction value demonstrates that not only are more people using UPI for payments, but the value of individual transactions is also rising, underscoring the platform’s increasing utility in both everyday consumer purchases and larger financial transactions.

A particularly notable aspect of the UPI transaction growth is the year-on-year (YoY) increase. Compared to December 2023, the volume of UPI transactions saw a significant rise of 39%. This 39% YoY growth is a clear indication of the platform’s rapid adoption and expansion across India. Over the past year, UPI has solidified itself as a preferred mode of payment, with more users and businesses embracing the convenience, speed, and security that it offers.

In addition to the growth in overall transaction volume and value, UPI also saw an increase in its average daily transaction count, which rose to 540 million in December from 516 million in November. This rise reflects the growing integration of UPI into daily life, with millions of users relying on the platform for everything from small, everyday purchases to larger financial transactions. The increase in daily transactions is also a testament to the increasing trust and familiarity that consumers have developed with the UPI ecosystem, as it continues to expand its reach and capabilities.

The National Payments Corporation of India (NPCI) has played a crucial role in the success and growth of UPI, driving its development and promoting its usage across various sectors. The platform’s ability to handle such high transaction volumes consistently, coupled with its ability to scale with increasing demand, has made it a cornerstone of India’s digital economy. The NPCI’s efforts to introduce innovations such as UPI 2.0 and UPI for feature phones have been instrumental in making UPI accessible to a broader range of users, especially in smaller towns and rural areas.

As India continues to embrace digital payments, UPI’s performance in December serves as a testament to the growing trust and adoption of the platform. With UPI increasingly becoming a central part of daily life for millions of Indians, the future of digital payments in the country looks incredibly promising, with UPI leading the way toward a fully digital financial ecosystem.