The National Payments Corporation of India (NPCI) data revealed a 27% year-on-year increase in the unified payments interface (UPI) transaction count, reaching 20.39 billion in February. Additionally, there was a 22% annual growth in transaction amount, totaling Rs 26.84 lakh crore.
In February, the average daily transaction amount rose to Rs 95,865 crore from Rs 91,403 crore in January, as per the NPCI data. The month also witnessed 728 million average daily transaction counts, up from 700 million in January.
Comparatively, in January, UPI experienced a 28% transaction count growth year-on-year, amounting to 21.70 billion transactions, with a 21% annual growth in transaction value at Rs 28.33 lakh crore.
The NPCI data for February highlighted that Immediate Payment Service (IMPS) monthly volumes reached 336 million, showing a 14% year-on-year growth at Rs 6.42 lakh crore, with 12 million average daily transaction counts. Moreover, FASTag monthly volumes stood at 350 million, totaling Rs 6,925 crore, reflecting a 5% annual growth.
India’s UPI has expanded its reach to more than eight countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar, positioning India as a global digital payments leader. The international adoption of UPI is enhancing remittances, driving financial inclusion, and solidifying India’s standing in the global fintech sector.
India and Israel recently announced plans to enhance their digital and financial collaboration by enabling cross-border use of UPI. This initiative aims to integrate UPI with Israel’s domestic payments framework to facilitate faster and more cost-effective digital transactions.
A study commissioned by India’s Finance Ministry revealed that UPI has become the preferred payment mode, constituting 57% of total payment transactions in India, surpassing cash transactions at 38%. The ease of use and instant fund transfer capability of UPI have been key factors driving its adoption.
