UPI Sees 6.6% Dip in November but Maintains Strong Year-on-Year Growth

The Unified Payments Interface (UPI) continues to be a cornerstone of digital payments in India, processing an impressive 15.48 billion transactions worth Rs 21.55 lakh crore in November 2024. While this marks a 6.6% decline in transaction count and an 8.3% drop in transaction value compared to October, the platform still showcases remarkable year-on-year (YoY) growth, highlighting its resilience and increasing adoption among users.

November Transaction Insights

In October, UPI recorded 16.58 billion transactions valued at Rs 23.50 lakh crore, reflecting a significant surge of 10% in volume compared to September’s 15.04 billion transactions. However, November’s figures indicate a slight dip, with daily averages standing at 516 million transactions, amounting to Rs 71,840 crore.

Despite the month-on-month decline, UPI’s year-on-year performance remains robust, with a 38% increase in transaction count and a 24% rise in transaction value compared to the same month last year. This growth underscores the platform’s integral role in facilitating digital payments across the country.

Market Share Dynamics

In terms of market share, PhonePe experienced a minor decrease, dropping to 47.66% in November from 48% in September. Meanwhile, Google Pay and Paytm maintained their market shares by volume. Notably, Navi has surpassed CRED to become the fourth-largest player in UPI by transaction volume, marking a significant shift in the competitive landscape. The market share data for November is still pending release, but these trends indicate a dynamic and evolving market.

Global Expansion

UPI is not just limited to India; it has expanded its services to several countries, including Sri Lanka, Mauritius, France, the UAE, Singapore, Bhutan, and Nepal. The National Payments Corporation of India (NPCI), through its international arm (NIPL), is actively engaging with at least 20 countries across Africa and South America to help develop systems similar to UPI. This international outreach reflects the growing recognition of UPI as a model for efficient digital payments.

Enhancements to UPI Transactions

In recent months, NPCI has implemented significant changes to UPI transaction limits. The upper limit for certain types of UPI payments has been raised to Rs 5 lakh, and caps for UPI Lite Wallet and UPI 123Pay have also been increased. These adjustments aim to encourage greater adoption of digital payments, aligning with the Indian government’s ambitious goal of achieving 1 billion daily transactions by 2026-27.