According to a recent report, the Unified Payment Interface (UPI) has emerged as a leader in transaction processing from April to July 2024, surpassing other alternative payment methods globally. This surge in UPI’s popularity is attributed to its growing adoption across various countries. Further enhancing the optimism surrounding UPI, Reserve Bank of India (RBI) Governor Shaktikanta Das announced that UPI is set to expand its reach into several more nations. Let’s delve deeper into the information shared by the RBI Governor.
Ongoing Discussions with Other Countries
RBI Governor Shaktikanta Das stated that he expects the Unified Payments Interface (UPI) to reach many more countries. On his five-day official visit, Das mentioned that UPI is already operational in various countries via QR codes and fast payment systems, and discussions are ongoing with numerous other nations regarding its implementation. He expressed confidence that UPI’s presence would increase globally, ultimately making it available on an international platform. During an event in Mumbai on Wednesday, he highlighted notable advancements in negotiations with countries such as Bhutan, Nepal, Sri Lanka, Singapore, UAE, Mauritius, Namibia, Peru, France, and others. These efforts indicate a positive attitude towards adopting India’s initiatives worldwide.
UPI: Number 1 on a Global Scale
- From April to July 2024, UPI processed transactions worth ₹80.8 lakh crores (approximately $964 billion).
- These figures represent a 37% increase year over year compared to the same period last year.
- In 2023, UPI achieved a remarkable milestone by processing 117.6 billion transactions, averaging an impressive 3729.1 transactions per second.
- Notably, UPI outperformed other global payment systems like China’s Alipay, PayPal, and Brazil’s PIX in terms of transaction volume.
- India recorded an increase of 58% in transactions per second, rising to 3729.1 in 2023 from 2348 in 2022.
- The total transaction value on the UPI platform during 2023 was approximately $2.19 trillion.
- In July of this year, UPI transactions reached a staggering ₹20.64 lakh crores (approximately $247 billion), marking the highest monthly transaction volume recorded.
- This indicates that, for three consecutive months, the processed transaction value has consistently remained above ₹20 lakh crores.
Comparative Status of Other Alternative Payment Methods (APMs)
According to data, Skrill, a digital wallet used in over 100 countries, ranked second globally in APM transaction volume in 2023, processing 49 billion transactions or an impressive 1553.8 transactions per second. Meanwhile, Brazil’s PIX, a real-time payment system similar to UPI, secured the third position with 42 billion transactions or 1331.8 transactions per second. Additionally, Alipay, a popular digital wallet in China, came in fourth with 36.5 billion transactions, averaging 1157.4 transactions per second.
Looking Ahead: The Future of UPI
As UPI continues to gain traction on a global scale, its expansion into international markets may pave the way for significant advancements in digital payments worldwide. The efforts of the Reserve Bank of India and the government’s initiatives to promote UPI will undoubtedly shape the future of financial transactions. With its user-friendly interface and enhanced security features, UPI is poised to revolutionize the way transactions are conducted not just in India, but globally.
