India's Digital Payment Ecosystem Reaches New Heights in December 2024: Report The exponential growth in digital payments in India can be attributed to several factors, including government initiatives like the "Digital India" campaign, convenience and security features, and expanding digital infrastructure.
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India's digital payment landscape has witnessed a robust growth, with Unified Payments Interface (UPI) transactions leading the charge. December 2024 proved to be a record-breaking month for UPI and other digital payment platforms, highlighting the country's rapid adoption of cashless transactions. The latest data from the National Payments Corporation of India (NPCI) underscores the robustness and scalability of India's digital payment infrastructure.
Unified Payments Interface (UPI), the cornerstone of India's digital payment revolution, reached its highest-ever transaction volume in December 2024. The platform processed 16.73 billion transactions, marking an 8 per cent month-on-month (MoM) increase from November. The total value of these transactions also surged by 8 per cent, climbing from INR 21.55 trillion in November to INR 23.25 trillion in December. This milestone underscores the increasing trust and reliance on UPI as a secure, efficient and versatile payment mechanism.
For the entire year, UPI witnessed remarkable growth. Transaction volumes jumped by 46 per cent, from 118 billion in 2023 to 172 billion in 2024, while the value of transactions surged by 35 per cent, reaching INR 247 trillion compared to INR 183 trillion in 2023. This growth can largely be attributed to the rise in person-to-merchant (P2M) transactions, which dominate UPI usage for buying goods and services.
Growth trends in transactions
December saw a rise in daily transactions, with the average number of daily UPI payments increasing from 516 million in November to 540 million, a 5 per cent jump. The corresponding daily transaction value also rose from INR 71,840 crore to INR 74,990 crore. Compared to December 2023, this represents a 39 per cent growth in volume and 28 per cent growth in value, demonstrating how UPI has cemented itself as the backbone of India's payment ecosystem.
October 2024 previously held the record for the highest transaction value, at INR 23.5 trillion, alongside a volume of 16.58 billion. However, December's performance surpassed these benchmarks, reaffirming the increasing momentum of digital payments in India.
While UPI remains dominant, other payment systems like the Immediate Payment Service (IMPS) and FASTag have also shown encouraging trends. IMPS transactions recorded an 8 per cent MoM increase, growing from 408 million in November to 441 million in December. The transaction value followed suit, rising from INR 5.58 trillion to INR 6.02 trillion. On a year-over-year basis, IMPS transactions saw a 6 per cent rise in value, even as the volume declined by 12 per cent, reflecting a shift toward higher-value transactions.
FASTag, the electronic toll collection system, registered a robust 6 per cent growth in transaction volume to 382 million in December, up from 359 million in November. The transaction value also rose by 9 per cent, reaching INR 6,642 crore. This represents a 10 per cent increase in volume and a 13 per cent increase in value compared to December 2023. Daily FASTag transactions grew modestly by 3 per cent, reflecting its steady adoption among vehicle owners for seamless toll payments.
The exponential growth in digital payments in India can be attributed to several factors, including government initiatives like the "Digital India" campaign, convenience and security features, and expanding digital infrastructure. This growth has significant implications for India's digital economy, reflecting a declining reliance on cash and a critical shift towards a more formal and transparent financial system.
