How UPI has helped India set this record globally - Times of India (2024)

FAQs

How has UPI helped India? ›

- Formalisation of the economy: By promoting digital transactions, UPI has helped in reducing the size of the informal economy, increasing tax revenues, and curbing black money circulation. As more businesses and individuals adopt digital payment methods, the Indian economy becomes more transparent and accountable.

Key advantages of UPI

UPI eliminates the need to carry cash or cards. You can perform transactions anytime, anywhere via your smartphone. Transactions can be initiated with a virtual payment address (VPA), reducing the hassle of entering long account numbers and IFSCs.

Unprecedented Growth: UPI has revolutionized digital payments in India. In May 2024, UPI transactions set a new record with 14.04 billion transactions worth Rs 20.45 trillion. This marks a significant increase from April 2024's 13.3 billion transactions and reflects the growing adoption of digital payments in India.

UPI has become a pivotal force in India's digital economy as an architecture framework with a set of standard Application Programming Interfaces (APIs) that facilitate easy integration. Its interoperability enhances financial access, and its real-time capabilities ensure swift fund transfers.

Total UPI transaction value in July 2024 reached ₹20.64 trillion. UPI transactions grew by 45% year-on-year. Average daily transaction value in July 2024 was ₹466 million (₹66,590 crore). Transaction value in July 2024 increased by 2.84% compared to June.

The total volume surged to a staggering 65.7 billion transactions, compared to 42.1 billion in the same period last year. The value of these transactions also witnessed a significant rise of 44%, reaching Rs 99.68 lakh crore. The report further emphasizes the rapid increase in payment acceptance channels across India.

1. PhonePe. PhonePe is amongst the widely used UPI apps in the country that is available in eleven Indian languages making it highly accessible for people from different regions. The UPI app performs all the tasks of normal UPI apps and has an additional benefit.

UPI - Unified Payments Interface. UPI or Unified Payments Interface, is a transformative technology that enables real-time digital payments through a UPI-enabled smartphone app. It allows users to send and receive money, make instant bill payments, and authorize transactions in a single step on one application.

Unified Payments Interface (UPI) has brought significant changes to India's economy. UPI has significantly contributed to the growth of India's digital economy by making cashless transactions more accessible and convenient for everyone. This has led to a remarkable increase in digital transactions across the country.

UPI eliminates the need for digital wallets, credit or debit cards, and other payment methods, making it an ideal solution for individuals and businesses looking for a quick, easy, and secure payment option.

Who brought UPI to India? ›

Abstract: The Unified Payment Interface (UPI) has revolutionized the way people make digital payments in India. UPI was launched by the National Payments Corporation of India (NPCI) in 2016 and has since become the most widely used digital payment system in India.

Impact on Digital Payments:

Financial Inclusion: UPI has played a crucial role in advancing financial inclusion in India. By providing a simple, accessible, and affordable payment solution, UPI has empowered millions of unbanked and underbanked individuals to participate in the formal financial system.

SME ecosystem

The Digital India initiative has also improbef entrepreneurship and innovation in India. The initiative has encouraged the growth of the Indian start-up ecosystem, with the government providing support through initiatives like Start-up India and the Atal Innovation Mission.

Income Streams of UPI Apps In India

Suppose you recharged your DTH account, a part of the revenue goes to the pocket of the UPI payment app. Some apps also charge a one-time brand placement fee initially. So, this is how the UPI business makes money.

UPI was officially launched in 2016 for public use. Under RBI guidance, NPCI became the primary body tasked with developing a new payment system that is simple, secure, and interoperable.

Bhutan. Bhutan has become the first country to adopt India's UPI standards for its quick response (QR) code. It is also the second country after Singapore to have BHIM-UPI acceptance at merchant locations.

World's leading research firm McKinsey has commented that the adoption of new technologies and innovative ideas across sectors by the Digital India programme will help India boost its GDP by $550 billion to $1 trillion by 2025.