UPI Users In India

Forget about Google! India is foreseeing the growth of UPIs. Yes, every individual in India might have come across any one of the UPI payment methods. Moreover, we can see more UPI users in India than people using cash. 

This article narrates the importance and the growth of UPI with necessary statistics. Let us get into it. 

UPI Users In India

Unified Payment Interface is a product from the National Payments Corporation of India. It allows users to enhance a flexible payment experience. UPIs like PhonePe, GooglePay can be used as the medium to connect with banks and transfer money. It is a user-friendly model that overtakes the older transaction modes. 

According to Statista, the June 2021 report shows the growth of UPI users in India. According to the report, around 2.8 billion digital payment transactions were recorded. It is worth 5 trillion INR. Compared to May 2021, it is an increase. 

 Out of 2.8 billion transactions, PhonePe occupies 46 percent, and Google Pay shares 35 percent. For seven times successively, PhonePe has been topping the list. Google Pay topped the list last in December 2020. Added to PhonePe and Google Pay, Paytm stands third in the list, with nearly 12 percent of the total UPI users in India.

Best UPIs for Bank Transactions

Many Indian Banks have collaborated with the BHIM-UPI platform to introduce several transaction apps. Various third-party companies have collaborated with Indian banks to plan the same scenario with security. Approximately 141 banks currently accept UPI payments. 

Here are the 6 best UPI apps as cited from the site.

  • GooglePay
  • PhonePe
  • Paytm
  • Amazon Pay
  • BHIM
  • Airtel Payments Bank App

UPI transactions do not require any details to make the transaction more secure. Added, your bank account will not be revealed at any cause. And the authenticity of the apps is high. This made many users use UPI without any hesitation. And there is a limit for transactions. It has been currently set to 1 Lakh INR per transaction. 

UPI’s Share in Indian Digital Payments Bank

Unified Payments Interface has become one of the biggest success stories. The UPI system has become strong enough to capture 73 percent of market share from all digital transactions volume within 5 years.

In 2018, UPI had a mere 9 percent share of all digital payments, which do not have a strong presence over the debit and credit card payments. Apart from internet banking, UPI seems to be weak in handling credit and debit card transactions. 

Later in the digital transactions between the year 2020 till Feb 2021, UPI payments grew about 93 percent yearly. It has been hovering around 41 lakh INR. The doubling of transactions has made them keep their foot strong in India. Unbelievably, the volume of transactions has grown from 1.32 billion to 2.2 billion at the same time. (source)

UPI Focuses On Small Towns Now

Digital payments turned successful in cities, now concentrating on expanding their usage in small towns. UPI digital payment apps are not new to those towns. But, the usage is low when compared to the cities. 

According to the joint report by Worldpay and FIS, around 39.7 percent of India’s eCommerce payments were done through digital wallets. Thereby, it has become the most used payment method in India. With the drastic growth in the eCommerce platform, individuals dwell in purchasing using their digital wallets adding positivity to their UPI service providers.

Through the transaction of small businesses, UPI payments may reach heights in the future. According to EY data, UPI-based transactions have extended upto 110 percent in volume and 109 percent in value from June 2020 to June 2021. 

PhonePe has also introduced a COD solution for their customers. Here, the customers can scan the QR code who wish to pay or prefer COD digitally at the time of delivery. It will drive contactless delivery and payments that people also wish in this scenario. Through this solution, PhonePe claims their user base has increased to 300 million currently from 200 million, which is the user base count in March 2020. 

WhatsApp Pay – Growing UPI service provider in the Future?

Digital payments will stay relevant to the digital world in the future. With the introduction of WhatsApp pay, it is likely to go ahead with the count. The user base has improved to 20 million as of November 2020.

The count seems to exceed in 2021 as the number of WhatsApp users is increasing and tend to increase in the future too. We can expect a growth of about 10 to 15x times the current UPI transaction market for the next 3 to 5 years.

Final Takeaway

UPI is the digital solution for our digital payment problems. Through this article, we might get an outline of the UPI service providers and other related information. 

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