In August, the unified payments interface (UPI) rose to over 3.55 billion transactions, a 9% jump in volume since July.
Digital payment services have caught a trend among the masses. In August itself, total UPI transactions crossed the 3.5 billion mark. It is a record high for the UPI transactions. The total value of the transactions stood at Rs 6.39 lakh crore.
PhonePe Dominates the Market
PhonePe is the market leader in UPI transactions. It dominates 47% of the market, while Google Pay’s market share is 38%. PhonePe crossed Rs 3 lakh crore mark in transaction value in August. About 1.66 billion transactions took place on this platform. Meanwhile, Google Pay saw 1.11 billion transactions with a value of Rs 2.44 lakh crore. Paytm remained the third player, with 0.49 billion transactions valued at Rs 56,319 crore.
What’s Working for UPI?
Until a few years ago, UPI’s total share in the overall retail payments was only 2%. Now, UPI is the easiest way to pay, with just a click. Ease of use, zero merchant discount rates, and its universal usage have surged its volumes to record high. UPI is replacing cash in the payments ecosystem leading to more digitisation. Cards are generally used now for higher value transactions, while UPI is used for making smaller purchases.
Future Road Ahead…
The steady reopening of the economy has boosted UPI transactions. Further ahead, it seems that the UPI transactions are the future. Digital payments are easy and have made purchases simple. People need not carry cash even if they step out. The whole digital payments system has made everything easier. The future looks promising for UPI transactions.
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