Digital payments boom: UPI records 29% transaction surge amidst persistent consumption uptrend

New Delhi: UPI transactions in India surged sharply in December, with transaction volumes rising 29 per cent year-on-year to 21.63 billion, underscoring sustained consumption growth and digital payment adoption, according to data released by the National Payments Corporation of India (NPCI) on Thursday.

The value of UPI transactions also recorded strong momentum, increasing 20 per cent annually to ₹27.97 lakh crore during the month. On a month-on-month basis, both transaction volumes and values posted notable gains.

NPCI data showed that the average daily UPI transaction value in December stood at ₹90,217 crore, up from ₹87,721 crore in November, while average daily transaction counts rose to 698 million, compared with 682 million in the previous month.

In November, UPI had logged 20.47 billion transactions, reflecting 32 per cent year-on-year growth, with transaction value rising 22 per cent to ₹26.32 lakh crore.

Meanwhile, transactions through the Immediate Payment Service (IMPS) also recorded steady growth. Monthly IMPS transaction value reached ₹6.62 lakh crore in December, marking a 10 per cent annual increase and an improvement from ₹6.15 lakh crore in November. IMPS transaction volumes climbed to 380 million, up from 369 million in November, while the average daily transaction value rose to ₹21,269 crore, compared with ₹20,506 crore in the previous month.

According to a recent report, India now has 709 million active UPI QR codes, reflecting a 21 per cent increase since July 2024. Widespread QR acceptance across kirana stores, pharmacies, transport hubs and rural markets has made scan-and-pay the preferred mode of payment nationwide, the report by Worldline India said.

The data also showed that person-to-merchant (P2M) transactions continued to outpace person-to-person (P2P) payments, highlighting UPI’s dominance in everyday retail spending. P2M transactions rose 35 per cent to 37.46 billion, while P2P transactions increased 29 per cent to 21.65 billion.

The average ticket size declined to ₹1,262 from ₹1,363, signalling higher usage for micro-transactions such as mobility, food, healthcare essentials and hyperlocal commerce.

Analysts said India’s Digital Public Infrastructure (DPI) has played a critical role in expanding access to digital payments, bridging the urban–rural divide and reinforcing the country’s position as a global digital payments leader.

IANS