Synopsis
Digital payment transactions have surged dramatically in FY25, reaching over 18,120 crore transactions and exceeding Rs 2,330 lakh crore in value. UPI continues to lead the charge, capturing 70% of the market. The government is actively promoting this growth through various incentive schemes.Key Takeaways
- Digital payment transactions exceeded 18,120 crore in FY25.
- Transaction value surpassed Rs 2,330 lakh crore.
- UPI's growth rate stands at 69 percent CAGR.
- 70% of digital transactions are through UPI.
- Number of banks offering digital payments rose from 216 to 572.
New Delhi, March 11 (NationPress) The digital payment transactions (including UPI) have surged past 18,120 crore transactions in the fiscal year 2024-25 (up to January this year), with the total transaction value exceeding Rs 2,330 lakh crore, as reported by the government on Tuesday.
The overall digital payment transactions have escalated from 8,839 crore in FY 2021-22 to 18,737 crore in FY 2023-24, marking a CAGR of 46 percent.
This remarkable growth is primarily fueled by the Unified Payment Interface (UPI), which has seen a CAGR of 69 percent, jumping from 4,597 crore transactions in FY 2021-22 to 13,116 crore transactions in FY 2023-24, according to Pankaj Chaudhary, the Minister of State for Finance, in a written statement to the Rajya Sabha.
UPI accounts for around 70 percent of total digital payment transactions in FY 2023-24. Additionally, the digital payment infrastructure (including QR codes and POS terminals), the onboarding of new merchants, and the growth of Third Party App Providers (TPAPs) have significantly expanded during this period, the minister stated.
The government has initiated a DIGIDHAN mission aimed at promoting digital payments and enhancing the country's digital payments ecosystem.
Since FY 2021-22, an incentive scheme has been introduced to encourage banks and other ecosystem partners to promote digital payments, particularly focusing on UPI.
During the scheme's design phase, discussions were held with relevant stakeholders, including banks. Moreover, an Incentive Scheme for Banks (ISB) portal has been established to facilitate awareness and streamline data collection.
Consequently, the number of banks providing digital payment services, including UPI, has surged from 216 in FY 2021-22 to 572 in FY 2023-24, according to the minister.
The Incentive Scheme for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions from person to merchant (P2M) has played a crucial role in the expansion of digital payments across the nation.
