UPI Transactions See Slight Dip To 13.89 Bn in June 2024 but Maintain Strong Year-on-Year Growth

Unified Payment Interface (UPI) transactions experienced a slight dip in June 2024, with a 1% decrease in volume and a 2% decrease in value compared to May 2024. According to data shared by the National Payments Corporation of India (NPCI), June saw 13.89 billion UPI transactions worth Rs 20.07 trillion. Despite this minor drop, the figures represent a substantial year-on-year growth of 49% in volume and 36% in value compared to June 2023. 

Record-Breaking Month in May

May 2024 was a record-breaking month for UPI, with 14.04 billion transactions amounting to Rs 20.45 trillion, marking the highest value and volume since UPI's inception in April 2016. The slight decline in June does not overshadow the significant progress UPI has made in becoming a dominant digital payment method in India.

IMPS Transactions Also See Decline

The Immediate Payment Service (IMPS) saw a 7% drop in transaction volume in June 2024, recording 517 million transactions compared to 558 million in May. In value terms, IMPS transactions decreased by 5%, falling from Rs 6.06 trillion in May to Rs 5.78 trillion in June. However, compared to June 2023, there was a 10% increase in volume and a 15% increase in value, indicating a steady annual growth.

FASTag Transactions Show Slight Dip

FASTag transactions also saw a decline in June 2024, with a 4% decrease in volume and a 2% decrease in value. June recorded 334 million transactions worth Rs 5,780 crore, down from 347 million transactions worth Rs 5,908 crore in May. Despite this monthly dip, there was a 6% rise in volume and an 11% rise in value compared to June 2023.

Contrary to the trends in UPI, IMPS, and FASTag, the Aadhaar Enabled Payment System (AePS) saw an 11% increase in transaction volume in June 2024, reaching 100 million transactions up from 90 million in May. In value terms, AePS transactions rose by 7%, from Rs 23,417 crore in May to Rs 25,122 crore in June. This growth highlights the increasing adoption and reliance on AePS for financial transactions.

While UPI, IMPS, and FASTag transactions experienced a slight dip in June 2024 compared to May, the overall growth compared to the previous year remains robust. UPI continues to lead the digital payment landscape in India with significant annual growth. The rise in AePS transactions underscores the diverse adoption of digital payment methods across the country. As digital payment systems evolve, these trends will be crucial in shaping the future of financial transactions in India.