India’s Digital Payments Revolution: UPI Transactions Reach Record Highs in Dec 2024

India’s digital payments landscape, spearheaded by UPI, continues to set global benchmarks.

NEW DELHI (India CSR): The Unified Payments Interface (UPI) in India reached a historic milestone in December 2024, registering a record volume of 16.73 billion transactions, reflecting an 8% increase compared to the previous month. In terms of transaction value, UPI recorded Rs 23.25 trillion, up from Rs 21.55 trillion in November 2024. This unprecedented growth underscores the continued rise of digital payments in India, driven by the government’s push for financial inclusion and technological innovation.

The Department of Financial Services (DFS), under the Ministry of Finance, has played a pivotal role in driving digital payment adoption, transforming the financial landscape by enabling real-time, secure, and convenient transactions for millions of Indians.

Key Highlights of UPI Growth

• December 2024 Performance:
  • Volume: 16.73 billion transactions
  • Value: Rs. 23.25 trillion
  • Daily average transactions: 540 million
  • Daily transaction value: Rs 74,990 crore
• Annual Growth in 2024:
  • Transaction Volume: 172 billion transactions (46% increase compared to 118 billion in 2023)
  • Transaction Value: Rs. 247 trillion (35% increase compared to Rs. 183 trillion in 2023)

The surge in transactions is primarily attributed to the rapid increase in Person-to-Merchant (P2M) transactions, where UPI has become the preferred mode for small-value payments, reflecting public trust and ease of use.

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Global Expansion of UPI

UPI’s global footprint continues to expand, with the payment system now live in seven countries:

• UAE
• Singapore
• Bhutan
• Nepal
• Sri Lanka
• France
• Mauritius

The cross-border payment capabilities of UPI and RuPay have strengthened remittance flows, simplified transactions for Indian travelers, and positioned India as a global leader in real-time digital payments. As per ACI Worldwide’s 2024 report, 49% of the global real-time payment transactions were processed in India, underscoring its dominance in the global digital payment ecosystem.

Growth in Digital Payment Ecosystem

The broader digital payment ecosystem has seen exponential growth:

• Total digital transactions (FY 2023-24): 18,737 crore (CAGR of 44% since FY 2017-18)
• Transaction Value (FY 2023-24): Rs 3,659 lakh crore (up from Rs. 1,962 lakh crore in FY 2017-18)

The DFS’s focus on enabling secure and accessible digital payment platforms has played a significant role in this growth.

UPI: Driving Financial Inclusion

UPI remains the cornerstone of India’s digital payment system, particularly for low-value transactions. In August 2024, 62.4% of UPI transactions were P2M payments, with 85% of these transactions valued at Rs. 500 or below. This trend highlights UPI’s critical role in promoting digital payments for day-to-day purchases, enhancing convenience, and fostering financial inclusion.

FASTag Transactions

FASTag, India’s automated toll collection system, also registered substantial growth in December 2024:

• Volume: 382 million transactions (6% increase compared to November)
• Value: Rs. 6,642 crore (9% increase compared to November)

This reflects the increasing adoption of digital toll payments, improving the convenience of highway travel across the country.

Government’s Vision and Initiatives

The government’s push for a cashless economy aligns with its broader vision of economic empowerment and financial inclusion. The introduction of apps such as Awas Plus-2024 and Awas Sakhi in 2024 further demonstrates the integration of digital tools to enhance transparency and ease in government schemes.

The DFS continues to explore ways to strengthen India’s digital payment infrastructure through fintech innovations, partnerships with global financial institutions, and public outreach programs to promote digital literacy.

(India CSR)