Even as India’s mobile Payment Method – UPI has increased remarkably from the early days of the COVID-19 outbreak there is a scope for future growth. Today, UPI, the largest digital payments player in India, remains instrumental in opening up credit to a large section of the population as seen by the recent comments from Google Pay’s VP Ambarish Kenghe.
Current UPI Usage: Image Builders
In his closing remarks of Global Fintech Fest Kenghe pointed out that about 400 million users are now actively using UPI for transactions. As we have seen above, the population of India is nearly 1. 4 billion, and about 900 million bank accounts which means UPI still has the potential for expansion on a significant scale. This underlines the prospect of the platform’s strengthening of its penetration of the Indian market.
The Road Ahead: Customers to carry out more UPI Transactions
Kenghe also prophesied that UPI transactions may reach 100 billion transactions per month shortly. According to the current stats, UPI has processed to 55. 66 billion transactions to be precise which is all $118 billion in equivalent. 79 trillion in the current financial year or FY25 which consists of the periods from July 2022 to March 2023. The Fill Up India initiative led to a record increase in usage figures: 131 billion transactions in FY24 against 84 billion in FY23 With the help of UPI, more than 100 billion transactions were processed for the first time. This has triggered a 10x growth in the transaction volumes in the last four years making up for 80 percent of the digital payment transactions in India as per the UPI.
Facilitating More Credit Through Unified Payments Interface
Moving forward, Kenghe also underlined that UPI will continue to enhance the credit service in the future not only by providing credit service on the platform but also by allowing more people to obtain more financial resources. Currently, UPI offers credit through two main channels: these include the ru Payment Credit Card on UPI and the credit line on UPI. In every month nearly ₹10,000 crore of credit transactions take place through UPI where ₹100-200 crore transactions happen through the Credit Line on UPI facility and the remaining through the RuPay Credit Card on UPI.
As the movement of the UPI proceeds, it is expected not only to enshrine its reign on digital payment but also to override credit in India thus enhancing the financial inclusion of millions of more citizens.
