UPI transactions hit a record high in August, but the growth pace slows, BFSI News, ET BFSI
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Unified payments interface (UPI) transactions hit a new record high in volume as well as in value for the third straight month in August.
UPI saw 3.55 billion transactions worth Rs 6.39 lakh crore in August, which is a 9.6% increase in volume and 5.4% surge in value compared with July.
However, the pace of growth has slowed in August. In July UPI had notched a record 3.24 billion transactions, up 15% over June figures. UPI transactions were subdued in April and May due to Covid restrictions.
In August 2021
Transactions through Bharat Bill Pay stood at 58.88 million, worth Rs 10,307 crore in August, a growth of 15.15% in volume and 7.2% in value from July.
FASTag transactions were at 201.2 million and Rs 3,076 crore in value in August, a 4.61% rise in volume and a 3.36% surge in value compared with July.
Transactions through Immediate Payment Service were at 377.94 million in terms of volume and Rs 3.18 lakh crore in value in August, an 8.05% rise in volume and 3.03% surge in value when compared with July.
Pandemic push
Since the beginning of the year, UPI transactions have grown 54% from 2.3 billion in January.
Since its launch in 2016, the UPI crossed 1 billion transactions for the first time in October 2019, which more than doubled to over 2 billion transactions in October 2020. The growth exploded during the pandemic as more people opted for contactless payment.
However, the transactions have picked up since the beginning of the pandemic as more consumers opted for digital payment options. They had been rising steadily to top 5 trln rupees in March and then 6 trln rupees in July.
Last fiscal jump
UPI transaction volumes surged 43.2% in the first quarter of the last fiscal, 98.5% in the second quarter 104.6% in the third and 112.5% in the fourth quarter.
While IMPS volumes degrew 9.6% in Q1, they rose 26% om Q2. 40.5% in the third quarter and 42.9% in the fourth quarter.
National Automated Clearing House (NACH) volumes grew 32.8 in the first quarter, 13 in second, 0.9 in third while they degrew 10.2 in the fourth.
BBPS volumes grew 66% in Q1, 103.2 in Q2, 84.4 in Q3 and 102.7 in Q4 while National Electronic Toll Collection, the NHAI’s Fastag system logged 83.9 growth in Q1, 249.2 in Q2, 195 in Q3 and 75.3 in the fourth quarter.
On the other hand, RTGS volumes degrew 26.2 in Q1, logged 3.1 in Q2, 10.2 in third and 31.1 in the fourth quarter.
NEFT volumes degrew 3.9% in the first quarter, grew 9.8 in second, 23.2 in third, 17.8 in the fourth quarter.
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