UPI ends 2024 on a high; industry bats for more incentives, monetisation to support growth
Subscribe to enjoy similar stories. The Unified Payments Interface (UPI) platform ended 2024 on a high, posting record transactions in December both in terms of value and volume.
However, with the pace of growth in the UPI user base slowing through 2024, industry players are calling for the entry and growth of newer players and the introduction of a tiered charge on UPI transactions to sustain growth this year. The UPI platform processed 172 billion transactions in 2024, growing 46% on year.
In December, the platform processed 16.7 billion transactions worth ₹23.25 trillion, up 39% on year in terms of the volume of transactions and 28% in terms of the transaction amount. Going into 2025 then, the prospects for UPI’s growth look strong on the back of recent initiatives such as UPI Lite, credit on UPI and UPI Circle which are especially expected to drive low cost and offline payments.
Also Read | How tourists and NRIs can use UPI without an Indian bank account to make payments “UPI is set to establish itself as the leading digital payment system globally by 2025, driven by increasing international adoption and innovations such as credit integration and Prepaid Payment Instruments (PPI) on UPI," said Ankush Julka, chief executive officer, MufinPay. These advancements and those such as super apps will allow UPI to be integrated with a wide array of services thus enhancing its reach, catering to new markets and diverse user segments, he added.
Shruti Aggarwal, co-founder, Stashfin expects UPI transactions to surpass 250 billion annual transactions by the end of 2025, marking an on-year growth of over 50%. Recent regulatory actions such as hiking the limit for UPI 123Pay will enhance UPI's usability across diverse user needs,
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