UPI transactions growth falls to single digit, grows merely 4.2% in January

UPI transactions (Unified Payments Interface) which saw a huge jump of 38 per cent in total transaction volume in December in comparison with the preceding month, has reflected a mere 4.2 per cent increase in January, this year.

As per NPCI tweet, total UPI transactions in last month recorded 151.83 million transaction which was 145 million for December month. The value of transactions rose about 18.2 per cent to 15,571 crore from Rs 13,174 crore in December.

Cashless transactions have now become simpler and convenient thanks to BHIM UPI. #DigitalIndia #InstantPayments #HighOnUPI @dilipasbe pic.twitter.com/Qp3Y6kbi5L

— BHIM (@NPCI_BHIM) February 1, 2018

The rise in the percentage of transactions value stood at 36 per cent in November-December period.

Additionally, the number of monthly transactions stood at 105 million in November while the value of transactions hit Rs 9,679 crore during the same month

BHIM, which is a flagship product of government Digital India campaign has remained flat for the last four months as far as transaction volumes are concerned. However, BHIM hasn't disclosed any data for the January month.

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In the month of December 2017, the BHIM UPI app transacted a total volume of 9.1 million with transactions worth Rs 3,083.2 crore.

The month-on-month transaction for BHIM recorded only 8.2 million transactions in November with a meager growth of 8 per cent from the previous month. The total amount of transactions in November were Rs 2553.5 crore.

Currently, there are 67 banks live on UPI platform, however, a major portion of transactions are being driven by smartphone-based payment applications such as Google’s Tez, Flipkart-owned PhonePe, Paytm and BHIM.

In November last year Paytm had enabled BHIM UPI onto its platform as it looks to double its monthly user base over the next two years. Unlike PhonePe and BHIM, Paytm would be leveraging its merchant base for driving Unique Payment Interface-based transaction.