New Delhi: Unified Payments Interface (UPI) has maintained its performance, exceeding 10 billion transactions for the second consecutive month. The National Payments Corporation of India (NPCI) reported that UPI recorded 10.56 billion transactions valued at Rs 15.8 lakh crore, in September.
Although the transaction volume only saw a slight increase from Rs 15.76 lakh crore in August to 15.8 lakh crore in September, the number of transactions experienced a minor dip from 10.58 billion to 10.56 billion. UPI surpassed 1 billion monthly transactions in October 2019.
According to NPCI data from August, PhonePe dominated the market with nearly 5 billion transactions, accounting for 47 percent of market shares with respect to the volume. Google Pay and Paytm recorded 3.7 billion and 1.36 billion transactions, respectively. Together, these three UPI apps held a collective market share of 95.68 percent in terms of transaction volume at the end of the June quarter. However, these figures are subjected to change in the near future as banks become more active participants.
On April 6, the Reserve Bank of India (RBI) announced plans to introduce pre-sanctioned credit lines within UPI, benefiting merchants and businesses by providing instant credit for their operational requirements. This development may further increase banks’ involvement in the UPI ecosystem, which has been dominated by only three key players.
Additionally, UPI will soon introduce UPI Lite transactions, which will raise the offline transaction limit from Rs 200 to Rs 500 and enable these transactions through Near Field Communication (NFC) technology. This enhancement will enable customers to make higher-value purchases and conduct transactions on millions of devices, including point-of-sale (POS) and SoftPOS terminals, already deployed in the market.
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