India’s digital payments journey has reached a new milestone, with transaction volumes registering a compound annual growth rate (CAGR) of 44%, surging from Rs 2,071 crore in FY2017-18 to Rs 18,737 crore in FY2023-24.
According to official data released on Friday, trading volume in the last five months (April-August) of the current financial year 2024-25 stood at Rs 8,659 crore.
The transaction value grew from Rs 1,962 crore to Rs 3,659 crore at a compound annual growth rate of 11 per cent. Moreover, in the last five months (April-August) of the current financial year 2024-25, the total transaction value surged to a staggering Rs 1,669 crore, an official release said.
The Department of Financial Services’ (DFS) efforts to accelerate the adoption of faster payment systems such as the Unified Payments Interface (UPI) have revolutionized the way financial transactions are conducted, enabling millions of people to make secure and seamless payments in real time.
This initiative is in line with the government’s vision of a cashless and inclusive economy, empowering all citizens to make financial decisions.
Compared to previous financial years, the digital payments landscape has shown significant expansion in FY 2023-24.
UPI’s continued success
UPI continues to be a linchpin in India’s digital payments ecosystem. The transaction volume that has revolutionised digital payments in India is expected to grow from INR 920 crore in 2017-18 to INR 13,116 crore in 2023-24, at a compound annual growth rate (CAGR) of 129 percent.
The transaction volume in the last five months (April-August) of the current financial year 2024-25 stood at Rs 7,062 crore.
The press release further added that ease of use, coupled with a growing network of participating banks and fintech platforms, has made UPI the most preferred real-time payment method for millions of users across the country.
UPI transaction volume has grown from Rs 10 lakh to Rs 2 lakh at a CAGR of 138%.Furthermore, in the last five months (April-August FY24-25), the total transaction volume has surged to a staggering Rs 1.01 lakh crore, the release stated.
Global rollout of UPI and RuPay
India’s digital payments revolution is spreading beyond borders. Both UPI and RuPay are rapidly expanding globally, enabling seamless cross-border transactions for Indians residing or travelling abroad. Currently, UPI is live in seven countries, including key markets like the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France and Mauritius., It enables Indian consumers and businesses to make and receive payments internationally.
This expansion will further strengthen remittance flows, improve financial inclusion and enhance India’s position in the global financial world. According to the ACI Worldwide Report 2024, India will be home to approximately 49 million people by 2023.10% of the world’s real-time payment transactions take place in India.
