The month of July recorded an increase of 432.5 million in the number of UPI transactions and saw the highest number of average transactions in a day.
The transaction value on the Unified Payments Interface (UPI) stood at Rs 6.06 lakh crores in July 2021, up by 2.1x compared to the same month in the previous year, according to data released by the National Payments Corporation of India (NCPI). Overall, transaction volumes increased by 2.2 times over the last year to 3.24 billion in July. While UPI payment volumes grew by 15.4% in July 2021 over the previous month, the UPI transaction value went up by 10.8% compared to June.
This sharp increase comes after a drastic slump in both metrics in April, given several state-imposed lockdowns due to the second wave of the COVID-19 pandemic.
1. Increase over June: The number of transactions increased by 432.5 million in July, whereas the total amount transacted went up by Rs 58,907.8 crores. In the previous month (June 2021), the volume of transactions had increased by 267.9 million and the amount transacted grew by Rs 56,734.5 crores.
2. Average transactions per day: Around 104.5 million transactions were completed and Rs 19,557.5 crores were transacted on an average per day in July. The average number of transactions per day in July 2021 was the highest till date.
3. Size of transaction: The average amount exchanged per transaction decreased marginally over the previous month to Rs 1,871. However, this is a slight year-on-year (YoY) decline of 4% from Rs 1,940 in July 2020. The average amount per transaction fell to its lowest in the past year in November 2020, to Rs 1,769.
4. Banks on UPI service: Three more banks onboarded UPI payments in June 2021, which brings the total to 227 banks. The nationwide lockdown due to the pandemic began at the end of March 2020 and lasted till mid-May after which relaxations have gradually come into place. It’s possible that more banks began UPI payments due to unprecedented immobility, along with a need to limit human contact, which meant a natural move to digital payments.
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