Developed by the National Payments Corporation of India (NPCI), the United Payments Interface (UPI) now boasts 11.63 million transactions in July, following a rise of 10 percent. Launched last year, the app witnessed significant growth post-demonetization in the country.
Introduced in August 2016 with 21 banks, the platform now supports 52 banks, and NPCI reveals that out of the total UPI transaction volume, over 22 percent is merchant-based. The total UPI volume, including UPI, BHIM and USSD 2.0 – *99#, in the last three months were 9.36 million, 10.35 million and 11.63 million respectively, while the value stood at Rs 2,797.07 crore, Rs 3,098.36 crore, Rs 3,411.35 crore in May, June, and July 2017 respectively.
In the post-demonetization era digital payment apps and services have flourished like never before. The recently released Mary Meeker report revealed that UPI’s monthly transaction value rose 24 times in less than two quarters by the end of financial year in March 2017. As per estimates, a third of India’s mobile wallet transactions happen on UPI. Its share stood at less than five percent before demonetization.
UPI covers private public sector banks as well as major private banks. Paytm is one of its top merchants, followed by PhonePe. The top aggregators of the platform include BillDesk, Razorpay, CCAvenue, PayUmoney and Citrus Pay.
Riding on the cashless drive, even messaging apps are integrating the interface to their platform. Recently, Truecaller launched UPI-based payments solution, while messaging app Hike is reportedly testing a similar service. Samsung also integrated the platform into its Samsung Pay mobile payments service. WhatsApp, on the other hand, has also expressed interest in developing a payments solution to aid in Digital India project. This week, global payments gateway PayU also became part of the government-backed UPI platform by launching its own UPI app that had been under pilot for three months.