We have seen a surge in the usage of digital payment platforms in India in recent time. Out of all the platforms, Unified Payment Interface (UPI) has gained popularity owing to its impressive features. This real time payment system allows users to transfer funds from their bank accounts to receiver’s bank account via a mobile app.

This efficient system of transferring funds has shaped the payment ecosystem across the financial world. In this blog, we will showcase UPIs success story through the years via statistics.

UPI Transactions – How Does It Work?

There are four major parties involved whenever a UPI transaction takes place – Payer Payment Service Provider (PSP), Payee Payment Service Provider (PSP), Remitting Bank and Beneficiary Bank.

Let’s have a clear understanding of the role each plays in the process:

1. Payer PSP

• On boarding Customer
• Creating UPI ID
• Creating first factor authentication

2. Payee PSP

• On boarding customers / merchants
• Aiding transfer of funds to the recipient using UPI

3. Remitting Bank

• Holding & debiting bank account for the transaction done
• Verifying & storing UPI PIN

4. Beneficiary Bank

• Crediting funds into beneficiary account

List of top UPI Statistics

Here, we have compiled some impressive UPI statistics that have been recorded since the time it was launched:

• 1. Launched in 2016, UPI grew at a fast pace touching 1 billion transactions within 3 years of its launch
• 2. The total number of transactions UPI handled in 2022 was worth INR 75 trillion
• 3. In 2023, the total number of UPI transactions recorded has touched 43.33 billion
• 4. The value of all transactions in 2023 totals above INR 83.14 trillion
• 5. A total of 9.33 billion UPI transactions were registered in June 2023
• 6. The total value of UPI transaction was above INR 14.75 trillion in June 2023
• 7. A total of 5,363.63 million peer-to-merchant UPI transactions took place in June 2023
• 8. 76.28% of the total transaction value came from peer-to-peer UPI transactions in June 2023
• 9. Approximately 94.3% of the UPI transactions have taken place via PhonePe, Google Pay, and PayTM
• 11. Around 18.8 million transactions took place with Cred
• 10. PhonePe initiated 46.4% of the total UPI transactions in 2023 followed by Google Pay at 34.75% and PayTM at 14.66%
• 12. Whatapp’s payment feature has reportedly handled around 230 million UPI transactions till date
• 13. 2415 million UPI transactions were processed by State Bank of India in June 2023
• 14. UPI is set to achieve a target of 1 billion daily transactions by 2026-27
• 15. The CAGR is expected to growth at the rate of 50% from 2022-23 to 2026-27

Conclusion

UPI has achieved remarkable success and has been adopted by many countries including Bhutan, Singapore and Nepal. A few more are planning to accept it in coming months which confirms its widespread popularity. It is expected that an additional $45.6 billion in economic output will be pushed via UPI payments in the next 3 years.

The statistics prove that the UPI payment system has been accepted widely, and is projected to grow at an exponential pace in the near future.