India’s UPI Poised to Surpass Visa’s Daily Transaction Volume, Setting Global Benchmark

Image Source : India Business & Trade

India’s Unified Payments Interface (UPI) is on track to surpass Visa’s daily transaction volume, marking a significant milestone in the country’s digital payments ecosystem. With consistent month-on-month growth and increasing adoption across urban and rural markets, UPI is set to become the world’s largest payment settlement platform.

Key Highlights of UPI’s Growth
- UPI recorded 644 million transactions on June 1 and 650 million the following day, reflecting its rapid expansion
- Visa processed an average of 639 million transactions per day in FY24, while UPI’s daily transaction volume in May stood at 602 million
- The National Payments Corporation of India (NPCI) has set a target of reaching 1 billion transactions per day, reinforcing UPI’s dominance in digital payments
- UPI transactions in May totaled ₹25.14 lakh crore, a 5 percent increase from April’s ₹23.94 lakh crore

Factors Driving UPI’s Expansion
- The platform’s seamless integration with banking systems and mobile applications has fueled widespread adoption
- Government initiatives promoting digital payments and financial inclusion have accelerated UPI’s growth trajectory
- UPI’s real-time settlement model offers advantages over traditional card networks, which rely on deferred settlement processes
- The increasing preference for cashless transactions among businesses and consumers has contributed to UPI’s rising transaction volumes

Future Outlook and Industry Impact
- Analysts anticipate that UPI will overtake Visa’s daily transaction volume within the next two to three months
- The platform’s continued expansion is expected to drive further innovations in digital payments and financial technology
- UPI’s success underscores India’s leadership in fintech, setting a precedent for other nations to enhance their digital payment infrastructure

Source : Firstpost, Financial Express, NPCI.