UPI transactions in December.
UPI, the largest digital payment platform in the country, has once again been successful in showing its strength. After a slight decline in November, UPI transactions made a strong comeback in December and created a new record in terms of both volume and value. In the last month of the year, the increasing expenditure of the people took digital payments to new heights.
Record performance of UPI in December
According to data from National Payments Corporation of India (NPCI), more than 21.6 billion transactions were done through UPI in December. This number was clearly higher than in November. The total value of transactions also increased to about Rs 28 lakh crore, which is considered to be the highest level till date.
Effect of festival and New Year shopping
The biggest reason behind the increase in UPI figures in December was the preparations for festivals and New Year. There was an increase in Christmas, New Year sale, travel booking, hotel, online shopping and retail expenditure. People preferred digital payment instead of cash, due to which the use of UPI increased rapidly.
Daily transactions also strong
On an average, crores of UPI transactions were recorded every day during December. The value of daily digital payments also remained at a high level. It is clear from this that UPI is no longer just a means of small payments, but its role has increased in big transactions also.
Growth in other digital modes also
Apart from UPI, digital payment systems like IMPS and FASTag also saw improvement in December. Both the number and value of IMPS transactions increased, while the use of FASTag also increased. Although a slight decline was recorded in the Aadhaar based payment system, there was a slight increase in it on an annual basis.
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increasing competition in the market
PhonePe and Google Pay still dominate the UPI ecosystem, but smaller apps are also gradually strengthening their hold. BHIM and other new platforms are attracting users, due to which competition is increasing and service is improving.
NPCI’s vigilance regarding security
Along with the rapid growth of UPI, NPCI is now paying more attention to user safety. Some such features are being reviewed, which can be misused for fraud. Especially caution is being taken regarding the features related to payment requests.