Unified Payment Interface (UPI) saw an increase of 20.2% in the total transaction volumes taking place between September 2019 and October 2019, according to data published by the National Payments Corporation of India (NPCI). The amount transacted grew 19% between September and October 2019. NPCI is a private company owned by Indian banks, it owns and operates important payments systems such as UPI and IMPS.

The total number of transactions in October 2019 was around 2.38 times higher than in the same month last year. The amount transacted went up to Rs 191,360 crores over previous month. The amount transacted in October 2019 was 2.5 times higher than in October 2018. However, given the limited impact of seasonality on digital payments, and the fact that this is supposed to be a high growth sector, month-on-month data needs to be looked at.

Some observations

1. A significant growth could be seen in number of transactions and amount transacted. Thus, the amount transacted per day has been on increase May 2019 onwards.

2. The number of transactions grew by 193.3 million in October, whereas the total amount transacted went up by Rs 29,903.4 crores. In the previous month (September 2019), volume had increased by 36.1 million and the amount transacted had grew by Rs 6,951.7 crores.

3. The average amount per transaction slightly decreased to Rs. 1,666 for October 2019, with an increase in the number of transactions. The average has been trending down since May 2019, but it has remained above the Rs 1,000 mark for the last 12 months.

4. The number of banks on UPI remained stagnant in October 2019.