UPI transactions dip 0.9% in June, but still show strong YoY growth

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Transactions made on the UPI (Unified Payments Interface) network decreased by 0.9 percent in June, both in terms of volume and value of transactions, After touching a record in May.

UPI transactions fell to INR 14.75 crore in June, with Rs 933 crore processed during the month, according to data from National Payments Corporation of India (NPCI). The number of deals increased by 59% over the year, and the value of transactions increased by 45% compared to June 2022.

In the first ten days of June, UPI transactions crossed Rs 320 crore and were expected to cross Rs 1,000 crore in June, as per reports. However, the momentum slowed in the second half of the month.

In May, UPI transactions crossed the record benchmark of Rs 900 crore per month, with a record transaction of Rs 941 crore with a value of INR 14.89 crore.

This is the first time that the number of transactions has decreased since February, and the value of transactions has decreased since April 2023. In fiscal year 23, the UPI platform processed 8,376 crores, total transaction ₹139 thousand crorescompared to Rs.4,597 crore valued at Rs.84,000 crore in FY22.

UPI-led digital retail payments grew at a compound annual growth rate (CAGR) of 50 percent in volume and 27 percent in value between 2016-17 and 2021-22, RBI recently said in its 2022-23 annual report. .

UPI transactions are expected to break through Rs 100 crore per day by FY27, according to a report by PwC India, which said UPI is expected to dominate the digital retail payments landscape, accounting for 90 percent of total transaction volume over the five years. coming years.