UPI Transactions Hit Record 16.99 Billion in January

By siliconindia  |  Friday, February 28, 2025

UPI Transactions Hit Record 16.99 Billion in January
In a historic record, Unified Payments Interface (UPI) transactions in January 2025 reached 16.99 billion, while the value exceeded Rs 23.48 lakh crore  the highest ever recorded for any month, as per latest government data.
For fiscal 2023-24, the Indian digital payments space demonstrated remarkable growth, with UPI solidifying its role as the backbone of the country's digital economy. The platform had an astonishing 80% market share in retail payments in the country.
The total transaction volume for FY 2023-24 crossed 131 billion, with the value crossing Rs 200 lakh crore. The success of UPI is attributed by the Ministry of Finance to its simplicity, quick adoption by consumers, and a growing network of banks and fintech platforms.
As of January, more than 80 UPI apps, both bank-owned and third-party, and 641 banks were live on the UPI ecosystem, testament to its vast uptake. According to the Ministry, the simplicity and convenience of UPI have enabled it to be the preferred way of making real-time payments by millions in urban and rural India.
In the current FY 2024-25 (to January), Person-to-Merchant (P2M) transactions accounted for 62.35% of the total UPI volume, with Person-to-Person (P2P) transactions accounting for 37.65%. Interestingly, 86% of P2M transactions were for amounts less than or equal to Rs 500, reflecting the faith reposed in UPI for routine, low-value payments.
"This indicates the confidence of citizens in transacting using UPI for small value, thus it being a critical part of the day-to-day economy", the Ministry said.
The reach of UPI is also crossing India's shores. The system now enables frictionless cross-border transactions for Indian travelers overseas, and is operational in more than seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. The international presence empowers Indian tourists to make real-time payments abroad, solidifying UPI's position as a benchmark for digital payments globally.
Cambridge Business School Professor Carlos Montes, who came to India for NXT event at Bharat Mandapam, was apprised of UPI's achievement and possibility as a model for other nations.
"India's UPI system offers a great chance for other countries to observe and emulate its digital payment revolution". said Montes after listening to a presentation on UPI's progress and emerging trends.
With its record-breaking growth and global reach, UPI continues to redefine online transactions, empowering millions and creating a global standard for real-time, secure, and easy-to-use payment systems.

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