UPI Transactions Record 6 Billion Mark In July

Transactions on the Unified Payments Interface (UPI) recorded the 6 billion mark in July 2022, the highest ever by India’s leading digital payments platform since its inception. According to the National Payments Corporation of India (NPCI),

UPI processed 628 crore transactions worth INR 10.63 lakh crore during the month, PM Narendra Modi praised the achievement.

“This is an outstanding achievement. It indicates the collective resolve of the people of India to adopt new technologies and make the economy cleaner. Digital payments were especially helpful during the COVID-19 pandemic,” the PM said on August 2 tweeted.

As per data released by NPCI, UPI reported 6.28 billion transactions amounting to INR 10.62 trillion. The month-on-month volume of transactions raised to 7.16 per cent and the value shot up 4.76 per cent. The year-on-year volume of transactions almost doubled and the value of transactions increased to 75 per cent.

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In July 2022, NPCI confirmed its plan to link credit cards with the UPI network. The scheme came just after the RBI governor’s announcement on allowing credit cards to be linked with UPI to facilitate payments. This, reportedly, will affect the average size of UPI’s transactions, which currently cost INR 2050 per transaction.

“The payment body will aim to save the small merchant from MDR, while merchants offering existing credit card services can continue to pay these rates. While credit cards attract higher MDR charges for merchants, UPI does not deduct additional charges. Despite the announcement of linking UPI with credit cards, there is no clarity on whether credit card transactions done from UPI will attract MDR or not,” said Dilip Asbe, CEO, NPCI, adding that the future plans to link UPI with credit cards.

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