Mobile payments in India have seen significant growth in recent years.
In the second half of last year, the total value of transactions via mobile phones reached Rs 198 lakh crore, marking a 30% year-on-year increase.
A key factor behind this growth is the rise in Unified Payments Interface (UPI) transactions.
UPI’s Impact on Mobile Payments
According to a recent report, mobile payments in the second half of last year were approximately 14.5% higher than the total amount spent using credit and debit cards.
Of the total mobile payment volume, UPI transactions accounted for about Rs 130 crore.
The strong digital payment infrastructure in the country has played a major role in the expansion of UPI usage.
UPI transactions are divided into two categories: Person-to-Person (P2P) and Person-to-Merchant (P2M). The average ticket size for UPI transactions was about Rs 1,515.
December UPI Transactions Soar
In December, UPI transactions reached a total of Rs 23.25 lakh crore, an increase from Rs 21.55 lakh crore in the previous month.
On a daily basis, the average value of UPI transactions in December was around Rs 74,990 crore, compared to Rs 71,840 crore in November.
NPCI Extends UPI Volume Limit and Expands WhatsApp Integration
The National Payments Corporation of India (NPCI), which operates UPI, recently extended the volume limit for UPI transactions for another two years.
Additionally, NPCI removed the limit on adding UPI users on WhatsApp Pay, allowing all WhatsApp users in India to access UPI services.
UPI One World Wallet for NRIs and Travelers
NPCI has also introduced the UPI One World Wallet for Non-Resident Indians (NRIs) and international travelers.
This service allows travelers who do not have an Indian bank account to make digital payments through UPI.
To use this service, travelers and NRIs need to download a prepaid UPI payment app, enabling them to make secure payments to merchants.
