The Unified Payment Interface (UPI) saw an increase of 4% in the total transaction volumes taking place between December 2017 and January 2018, according to data published by the National Payments Corporation of India (NPCI). The NPCI is a company owned by Indian banks and owns and operates payments systems such as UPI and IMPS.

The total number of transactions in January 2018 were around 34 times higher than in the same month last year. The amount transacted increased by 18% to Rs 15,571.2 crores over December 2017. The amount transacted in January 2018 was 9 times higher than in the corresponding month last year. In January, the number of transactions and amount transacted occurred per day as a result both were at their highest peak.

Some observations:

1. UPI transactions have been growing since launch. There appears to have been a hockey-stick effect that has taken place in the last five months. Note that Google Tez launched on September 18, 2017, and had reported 140 million transactions for the month of October and November since launch, apart from 12 million users. Note that the chart above shows a slight dip in February. However, if you look at UPI transactions on a per day basis for each month, there has been a continuous increase, as indicated in the chart below.

However, the increase in the number of transactions should be taken with a pinch of salt as PhonePe CEO Sameer Nigam pointed out that these are artificial as most new users are only doing P2P transactions worth Rs 1 in hopes of getting a cashback in their accounts.

2. The number of transactions grew by 6.4 million in January 2018 whereas the total amount transacted increased by Rs 2,426.9 crores. In December 2017, volume had increased by 40.6 million and amount transacted had grown Rs 3,503.7 crores.

3. The average amount per transaction rose to Rs 1,026 for January 2018. It has been trending down, with an increase in the number of transactions. Even then, it has remained above of Rs 900 mark.

4. The number of banks on UPI increased to 71 in January 2018.