New Delhi: India’s ‘Unified Payments Interface’ (UPI) continues to grow in a very short period of time crossing monthly volumes exceeding 9 billion transactions for the first time in May 2023, which is a 58 percent on YoY (Year-over-Year) volume growth.
UPI payment volumes now exceed 75 percent of all digital payments made in the country.
The volume growth of UPI peer-to-merchant (P2M) payments continues to trend significantly higher than that of peer-to-peer (P2P) payments, proof that Indian merchants have accepted UPI as a part and parcel of their business payment system. According to a recent report by PwC, the UPI will record 1 billion transactions per day by FY 2026-2027, showing that the future growth projections for the growth of the indigenous digital payment system are quite promising.
Moreover, UPI transactions are secured through multi-factor authentication, ensuring that financial data remains confidential and protected from cyber threats. This commitment to security has played a pivotal role in building trust among users, both within India and across international borders. The
success of UPI serves as a blueprint for other nations seeking to modernize their payment infrastructure and enhance financial inclusion.
Speaking on the sidelines of the G20 digital economy working group meeting, Indian Union Minister for Railways, Communication, Electronics and Information Technology Ashwini Vaishnaw said that ‘India had signed Memoranda of Understanding (MoU) with 13 countries to adopt the UPI interface for digital payments, and that Singapore has completed its UPI integration’.
The worldwide acceptance of UPI is not only a testament to its efficiency but also a significant step towards creating a more interconnected global economy. One after another, nations are embracing this groundbreaking technology, allowing for secure and convenient cross-border transactions.
The UPI has now gained international recognition, with countries like Sri Lanka, France, Saudi Arabia, Bahrain, Maldives, Bhutan, Oman, and the United Arab Emirates (UAE) embracing its transformative potential. The list of countries that are interested in adopting this Indian digital payment system is growing.
Singapore's PayNow system entered into an agreement with UPI in 2023, enabling seamless cross-border transactions between the two nations. Meanwhile, countries such as Bhutan and Nepal have already embraced the UPI system, underscoring its versatile nature and compatibility with varying financial landscapes.
According to a Forbes report, it is no exaggeration to say that the UPI real-time payments system has been a game changer for the subcontinent. In a nutshell, UPI has transformed how Indians make payments, allowing them for the first time to easily transfer money instantly from one bank account to another: peer-to-peer and peer-to-business.
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