Unified Payment Interface (UPI) saw an increase of 1.4% in the total transaction volumes between January and February 2020, according to data published by the National Payments Corporation of India (NPCI). For the same period, the amount transacted went up by 2.7%. 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 February 2020 was around 1.96 times higher than in the same month last year. The amount transacted went up to Rs 2,21,995 crore. The amount transacted in February 2020 was 2.1 times as compared to amount in February 2019. 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. Although the amount transacted has been on increase, the total number of transactions between January and February 2020 saw only an incremental increase. Therefore, a hike in average amount per day can be seen for February.

2. The number of transactions increased by 18.3 million in February, whereas the total amount transacted went up by Rs 5,752.5 crores. In the previous month (January 2020), volume had decreased by 3.4 million and the amount transacted had grown by Rs 13,722 crores.

3. The average amount per transaction increased to Rs 1,678 for February 2020 with an increase in the total amount transacted. The average has been trending up since November 2019.For the last 12 months, it has stayed north of Rs 1,500.

4. The number of banks on UPI increased to 146 in February 2020.