The Unified Payments Interface (UPI) has showcased extraordinary growth in 2024, recording 15,547 crore transactions worth Rs.223 lakh crore between January and November, according to the Finance Ministry.
In a post on X (formerly Twitter) under the hashtag #FinMinYearReview2024, the Finance Ministry emphasized the transformative role of UPI in revolutionizing financial transactions in India. UPI's success is not confined to domestic achievements—it has also gained global recognition, with operations expanding to seven countries, including the UAE, Singapore, France, and Sri Lanka.
UPI: A Revolution in Digital Payments
Launched in 2016 by the NPCI - The National Payments Corpof India,UPI has become a cornerstone of India's digital payment ecosystem. By enabling instant transfers between bank accounts via a single mobile application, it has streamlined fund transfers, merchant payments, and peer-to-peer transactions.
This system has not only made transactions faster and more secure but has also played a pivotal role in promoting financial inclusion. It has empowered small businesses, street vendors, and migrant workers by providing them with an easy and efficient way to handle payments, particularly during the Covid-19 pandemic when demand for contactless transactions surged.
Milestones and Global Expansion
October 2024 marked a historic milestone for UPI, as it processed 16.58 billion transactions worth Rs.23.49 lakh crore in a single month. This represents a 45% year-on-year growth compared to October 2023, highlighting its dominance in India's payment landscape. Currently, 632 banks are integrated with the UPI platform, underlining its widespread adoption.
UPI’s global footprint has been equally impressive. Its debut in France marked its entry into Europe, enabling Indian businesses and consumers to make seamless payments while living or traveling abroad. UPI's adoption across countries like Bhutan, Mauritius, and Singapore underscores its potential as a global digital payment system.
Driving Behavioral and Economic Change
UPI’s success stems not only from its robust infrastructure but also from the behavioral shift it has encouraged. Trust, accessibility, and convenience have been key factors driving widespread adoption. The system has contributed significantly to India’s transition toward a cashless economy, making financial transactions effortless and secure for millions.
Prime Minister Narendra Modi has been a strong advocate for UPI's global expansion, particularly within the BRICS grouping, now comprising six additional member states. This initiative aims to strengthen remittance flows and financial inclusion, further enhancing India's position in the global financial ecosystem.
Leadership in Real-Time Payments
India’s dominance in the digital payment space is evident from the ACI Worldwide Report 2024, which states that the country accounted for nearly 49% of global real-time payment transactions in 2023. This underscores India's leadership in digital payment innovation and its ability to set benchmarks for the world.
With its unprecedented growth, global expansion, and influence on financial habits, UPI continues to shape India’s economic future while solidifying its stature as a global leader in digital payments.
