The Unified Payments Interface (UPI) saw an extensive growth of 767% in the total transaction volume, taking its number to 3,708 million in 2018 from 427.5 million in 2017, according to data published by the National Payments Corporation of India (NPCI).

In addition, 17% of UPI transactions carried out in December 2018 alone contributed  620 million transactions. The NPCI is a private company owned by Indian banks, and owns and operates payments systems such as the UPI and IMPS.

The total number of transactions in 2018 was around 7.67 times higher than previous year’s 427.5 million transactions. The amount transacted increased by 921% to Rs 5,79,713 crores annually, 9.21 times higher than 2017.

On a monthly basis, UPI transaction volumes increased to 620 million, up 18% from 524.9 million transactions taking place between November and December 2018, while the amount transacted increased to Rs 102,595 crore – the highest in this month. The average transaction amount surged to Rs 1,654 per transaction.

Some observations:

1. UPI transactions have been growing since launch, except May and July 2018. Growth has typically been driven by new launches and cashbacks: Google Tez launched on September 18, 2017, gave cashbacks, and reported 140 million transactions for the month of October and November 2017 since launch, with 12 million users. The growth in October 2018 can’t be attributed to any particular service launch.

2. The number of transactions grew by 3,280.6 million in 2018, whereas the total amount transacted increased by Rs 5,22,940 crores.

3. The average amount per transaction went up Rs 1,563 for the year 2018 with an increase in amount transacted. It has been trending up, with a significant increase in the amount transacted. It has remained above the Rs 1,300 mark.

4. There were 129 banks on UPI at the end of 2018.