UPI Ends 2018 with a 3-billion Transactions

Digital payments mechanism Unified Payments Interface has ended 2018 with a bang, recording more than 620 million transactions in December, taking the total count for the year to over 3 billion.

The number of transactions in December was 18% more than the 525 million recorded in November. The value of total transactions carried out on the UPI platform touched ₹1 lakh crore in December, the highest ever for a month since its launch more than two years ago.

As per latest data shared by the National Payments Corporation of India, which manages the platform, 2018 has turned out to be a critical year for the retail payment mode, which attracted global majors like Amazon and WhatsApp and domestic players such as Paytm and PhonePe to adopt its settlement system.

Adoption of UPI, which was launched in August 2016 by the then Reserve Bank of India governor Raghuram Rajan, picked up momentum post demonetisation. It was only in November 2017 that UPI first crossed the 100-million transaction mark for a month. In November 2018, it broke into the 500-million monthly transaction level.

Besides overall peer-to-peer transactions, which has been the major use case for UPI, there are multiple merchant transactions that are moving onto this platform. Mutual fund payments were slowly moving onto UPI, with multiple new-age tech platforms opening it up as a payment mode.

Sanjeev Singhal, founder of mutual fund investment platform Scripbox, said that since amounts tend to be large for investments, consumers preferred UPI for online transfers as it offered more reliability.

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