Business

UPI Transactions Surge To Record 16.73 Billion In December 2024; NPCI Extends Volume Cap Deadline

Unified Payments Interface (UPI) transactions reached an all-time high of 16.73 billion in December 2024, marking an 8% increase from the 15.48 billion transactions recorded in November 2024, according to the National Payments Corporation of India (NPCI).

The total value of UPI transactions in December stood at ₹23.25 lakh crore, up from ₹21.55 lakh crore in November. December also saw an average of 539.68 million transactions per day, an increase from 516.07 million in November.

Increase In UPI Transaction Volume

The growth in UPI transactions is notable, reflecting the ongoing expansion of digital payments in India. This surge mirrors a similar rise observed in May 2024, when UPI transactions jumped to 14.03 billion from 13.3 billion in April.

On January 1, 2025, NPCI announced a two-year extension for compliance with UPI volume cap guidelines. The new deadline is set for December 31, 2026. Originally scheduled for 2021, the cap’s implementation had been delayed due to pushback from service providers, with further adjustments made for WhatsApp Pay, which has now been allowed to extend services to all users.

The cap applies only to third-party application providers (TPAPs), not to bank-owned UPI apps. This extension benefits PhonePe and Google Pay, which dominate India’s UPI payments market. Together, they account for over 85% of the total UPI transactions, both by volume and value.

Also Read: India’s Textile & Apparel Exports Clock 7% Growth At $21.36 Billion In April-October

Ajaypal Choudhary

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