UPI hits record 16.73 billion transaction in Dec valued at Rs 23.25 lakh crore
1 Jan 2025 9:06 PM IST
Mumbai: Unified Payments Interface (UPI) transactions recorded an all-time high of 16.73 billion in December 2024, marking an eight per cent month-on-month increase from November's 15.48 billion. Transaction value was also up by eight per cent to Rs 23.25 lakh crore, compared to Rs 21.55 lakh crore in November as per National Payments Corporation of India (NPCI) data.
Interestingly, the average ticket size for UPI transactions has gradually been falling over time indicating that UPI is increasingly being used for micro transactions. While the average ticket size in January 2024 was Rs 1508, it fell to Rs 1383 in December 2024.
For the year 2024, the transaction volume increased by 46 per cent to around 172 billion transactions against 118 billion in 2023. In value terms, transactions increased by 35 per cent to around Rs 247 lakh crore during the year compared with Rs 183 lakh crore in 2023. Person-to-merchant transactions for buying goods and services emerged as a significant contributor to UPI's growth in 2024. The platform's previous peak was in October 2024, with 16.58 billion transactions valued at Rs 23.5 lakh crore.
Navin Surya, fintech industry expert said, “The growth in UPI transactions has been amazing news and probably the highest in the global payments industry at that scale and especially in the fast payments segment. It reiterates Indian leadership in the global payments market.”
“On the other hand, reducing average transaction value is also good news as it indicates that the overall target of financial inclusion is also being achieved. It indicates that more and more small value transactions are being done by the users, which otherwise would have been done using cash. It shows that consumer preference to use UPI for transactions of lower value versus cash is moving in favor of UPI. Overall transaction limits change over time may change this ratio, but I am sure the data of different transaction values is being closely monitored by the NPCI and the RBI and it must be showing a positive and very high growth trend for sub-Rs 500 value transactions,” added Surya.
UPI’s December daily transaction volumes increased to 54 crore compared to 51 crore in November. The daily transaction value also grew to Rs 74,990 crore from Rs 71,840 crore in November. Compared to December 2023, this represents a 39 per cent growth in transaction volume and a 28 per cent increase in transaction value.
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