The Unified Payments Interface (UPI) had a strong start to 2024, but experienced a slight decline in transactions during February. Despite the dip, the number of transactions remained above the levels seen in December 2023. According to data from the National Payments Corporation of India (NPCI), transactions worth ₹18.28-lakh crore were processed in February, which was nearly 1 percent lower than the peak of ₹18.41 lakh crore in January 2024. However, the value of transactions was still 48 percent higher compared to the same period last year.
UPI Daily Product Statistics: February 2024
| Day | Volume (million) |
|---|---|
| February 1, 2024 | 431.859 |
| February 2, 2024 | 433.491 |
| February 3, 2024 | 431.146 |
| February 4, 2024 | 419.376 |
| February 5, 2024 | 430.428 |
| February 6, 2024 | 403.023 |
| February 7, 2024 | 436.919 |
| February 8, 2024 | 431.524 |
| February 9, 2024 | 432.959 |
| February 10, 2024 | 437.73 |
| February 11, 2024 | 423.239 |
| February 12, 2024 | 426.337 |
| February 13, 2024 | 419.77 |
| February 14, 2024 | 420.621 |
| February 15, 2024 | 420.045 |
| February 16, 2024 | 409.975 |
| February 17, 2024 | 404.574 |
| February 18, 2024 | 407.449 |
| February 19, 2024 | 406.978 |
| February 20, 2024 | 410.595 |
| February 21, 2024 | 413.867 |
| February 22, 2024 | 403.186 |
| February 23, 2024 | 410.278 |
| February 24, 2024 | 401.305 |
| February 25, 2024 | 398.982 |
| February 26, 2024 | 400.004 |
| Total | 10865.66 |
The volume of transactions on the UPI network also decreased by 0.8 percent to 1,210 crore in February, down from 1,220 crore transactions in January. However, compared to the previous year, the volume of transactions was still 61 percent higher. It’s worth noting that transaction volumes and amounts are typically lower in February due to the shorter duration of the month.
There were a few factors that may have contributed to the decline in UPI transactions in February. One factor was a technical breakdown at multiple banks earlier in the month, which resulted in server downtime and failed UPI transactions. Additionally, the shorter month of February may have also played a role in the decline.
Despite the slight dip in February, UPI transactions have consistently shown strong year-on-year growth. In 2023 and the current fiscal year, the value of transactions has consistently grown over 40 percent, while the volume of UPI trades has grown above 50 percent. In the previous fiscal year (FY23), the UPI platform processed 8,376 crore transactions totaling ₹139-lakh crore.
The growth of UPI transactions can be attributed to various factors, including a shift in consumer behavior away from traditional cash transactions, increased convenience through value-added features, digital adoption by merchants through third-party payment applications, and a rising share of person-to-merchant (P2M) transactions.
While February’s decline in transactions may not be comparable due to the shorter month, a more telling metric is transactions per day. In this regard, February saw a higher average of 417 million transactions per day compared to 393 million transactions per day in January 2024. Given the trajectory of growth, experts believe that UPI monthly transactions are likely to reach 20 billion by the end of FY25.
Looking ahead, a report by PwC India predicts that UPI transactions will surpass 100 crore transactions per day by FY27. The report also projects that UPI will dominate the retail digital payments landscape, accounting for 90 percent of total transaction volumes over the next five years.