The Unified Payment Interface (UPI) saw an increase of 11.7% in the total transaction volumes taking place between July 2019 and August 2019, according to data published by the National Payments Corporation of India (NPCI). Amount transacted slightly grew between July and August 2019. NPCI is a private company owned by Indian banks and owns and operates important payments systems such as UPI and IMPS.

The total number of transactions in August 2019 was around 2.9 times higher than in the same month last year. The amount transacted went up marginally to Rs 154,504.9 crores over July. The amount transacted in August 2019 was 2.8 times higher than in August 2018. However, given the limited impact of seasonality on digital payments, and the fact that this is pipped to be a high growths sector, month-on-month data needs to be looked at.

Some observations

1. Although more growth could be seen in the number of transactions than amount transacted, the amount transacted per day has been mostly flat April 2019 onwards.

2. The number of transactions grew by 96.1 million in August, whereas the total amount transacted went up by Rs 8,118.3 crores. In the previous month (July 2019), volume had increased by 67.8 million and the amount transacted had slightly decreased by Rs 179.7 crores.

3. The average amount per transaction declined to Rs. 1,682 for August 2019 with more increase in the number of transactions. It has been trending down since May 2019. The average amount per transaction has remained above Rs 1,000 mark for the last 12 months.

4. The number of banks on UPI declined to 141 in August 2019.