The UPI transaction value of digital payments in India has seen an enormous rise, reaching Rs 1,669 lakh crore in the first five months of the financial year 2024-25, covering the period from April to August 2024. The Union Finance Ministry revealed that during this time, 8,659 crore transactions were recorded. UPI transactions have skyrocketed, growing from Rs 1 lakh crore to Rs 200 lakh crore with a compound annual growth rate (CAGR) of 138%.
In just the last five months of FY 2024-25, the total value of UPI transactions has hit Rs 101 lakh crore, reflecting the increasing popularity and reliance on digital payments in India.
UPI Transaction Value
The Ministry of Finance highlighted the ongoing expansion of digital payments across the country. The number of digital transactions surged from 2,071 crore in FY 2017-18 to an impressive 18,737 crore in FY 2023-24, growing at a CAGR of 44%. During the first five months of FY 2024-25 alone, the total transaction value reached Rs 3,659 lakh crore, growing at a rate of 11%.
This shows that digital payments are not only increasing in volume but also rapidly growing in value, transforming the way Indians conduct financial transactions.
India’s Digital Payment Ecosystem
The Unified Payments Interface (UPI) continues to play a pivotal role in India’s digital economy. UPI has seen remarkable growth, with transactions rising from 92 crore in FY 2017-18 to 13,116 crore in FY 2023-24, marking a CAGR of 129%. The Ministry emphasized how UPI has revolutionized financial transactions in India by enabling real-time, secure, and seamless payments for millions of users.
Efforts to promote UPI and similar fast payment systems have transformed financial dealings, making digital transactions more accessible and reliable.
Global Expansion of UPI and RuPay
India’s digital payment expansion is not limited to domestic growth. Both UPI and RuPay are now live in 7 countries, including important markets like the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. This global reach allows Indian consumers and businesses to make seamless cross-border payments and enables Indians abroad to transact effortlessly.
The expansion of UPI is expected to enhance remittance flows, improve financial inclusion, and strengthen India’s standing in the global financial landscape.
