New Delhi, Sep 1: India’s digital payments landscape continued to expand at a rapid pace in August, with the Unified Payments Interface (UPI) recording a new monthly high of 24.51 billion transactions worth Rs 29.82 lakh crore.
Data released by the National Payments Corporation of India (NPCI) showed that UPI transaction volumes increased 3.6 per cent from 23.66 billion in July. On a year-on-year basis, transaction volumes rose 22 per cent, highlighting the growing dependence of consumers and businesses on instant digital payments.
The value of transactions, however, remained broadly stable on a monthly basis. UPI processed transactions worth Rs 29.88 lakh crore in July, compared with Rs 29.82 lakh crore in August, marking a marginal decline of around 0.2 per cent. On a year-on-year basis, transaction value increased 20 per cent.
On an average day, UPI processed nearly 791 million transactions during August, while the average daily transaction value stood at around Rs 96,205 crore.
The latest performance underlines how deeply digital payments have become embedded in everyday economic activity. From neighbourhood shops and food outlets to online purchases, utility payments and money transfers, UPI has increasingly become a preferred payment option because of its speed and convenience.
The sharp rise in transaction volumes, despite the marginal decline in overall value from July, also points to the continued popularity of smaller-ticket digital payments. The government has noted that a large share of UPI merchant transactions consists of payments below Rs 500, reflecting its widespread use for routine purchases.
UPI’s growth has been particularly striking over the past decade. The platform has evolved from a relatively new digital payment system into a core part of India’s financial infrastructure, with annual transaction volumes rising dramatically since its launch.
The August milestone comes after UPI crossed the 23-billion monthly transaction mark earlier this year. Its latest performance further reinforces the platform’s position at the centre of India’s shift towards a real-time, mobile-first payments ecosystem.
Meanwhile, the Immediate Payment Service (IMPS) recorded 360 million transactions in August, with the transaction value rising 18 per cent year-on-year to Rs 7.04 lakh crore, according to NPCI data.
UPI is also steadily expanding its international footprint, with the payment system now available for merchant payments in multiple countries. The expansion is enabling Indian travellers to use familiar UPI-enabled applications for digital payments overseas while strengthening India’s presence in the global real-time payments ecosystem.
With transaction volumes continuing to set new records, the August numbers highlight the increasing role of digital payments in India’s consumer economy and the growing preference for fast, convenient and interoperable payment methods.