The Finance Ministry of India officially stated on 20th September 2024 that digital payments recorded a 44% CAGR in 2023-24 financial year. Not just that, the transaction volume from August to September of the current year is 8,659 crore. Digital payments value in FY 2023-24, it is 3,659 lakh crore which is 11% CAGR. And much credit for these record-breaking growth in digital payments goes to UPI – which creates a record with 45% of global online payments.

Growth of Digital payments

The key reason behind this superfast growth in digital payments is the encouragement to use UPI for fast, reliable, and secure transactions. In India, people from almost all corners are somehow becoming a part of digital transactions through digital wallets, UPI, etc.

So, there are the contributions of all Indians behind the growth of digital payment. The finance ministry of India wanted growth in digital payments, but initially, there were difficulties in achieving this goal. Advanced technologies were not that accessible to users. As soon as the technologies became accessible, there was reluctance to use those solutions. The users had safety concerns, or so-called trust issues with the available payment solutions.

Soon, RBI and the finance ministry started endorsements to reduce the reluctance. The initial solutions were hard to understand for the users, and nobody explained the functionalities of these solutions in easier terms. As soon as these complications were removed, the stigma broke. Hence, people happily accepted and used the payment solutions extensively.

From the financial year 2017-18, digital payments took a toll. And every single year after that, it kept growing.

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The Growth Statistics of Digital Payments

The volume of digital transactions recorded in 2023-24 was 18,737 crore, and in 2017-18, it was 2,071 crore. Not just that, some bigger numbers are about to come by the closure of FY 2024-25 because from April to August of 2024, the transaction value already reached 8659 crore.

Well, this is about the transaction volume – let’s have a look at the growth of transaction value: In FY23-24, the recorded transaction value was Rs 3,659 lakh crore – but, in 2017-18, the value was 1,962 lakh crore. It shows a CAGR of 11%. And from April to August of FY 2024-25, the transaction value has already touched 1,669 lakh crore. So, there is a clear possibility of further growth.

Also, readFuture of India’s Fintech Industry – A Steep Growth Is On The Way

UPI – The Ruler In Digital Payment World

As known to all, UPI holds a major share in India’s digital payment scenario. If the growth statistics of overall digital payments are shocking, the statistics of UPI hold even more surprise!

In FY 2017-18, the volume of UPI transactions was 92 crore. And in the last financial year(2023-24), it reached 13,116 crore – the CAGR is a massive 129%. In the first 5 months of current financial year, this number reached 7,062 crore. Hence, one can assume how big the closure figure will be!

Let’s now move on to the UPI transaction value:

In the last financial year (2023-24), UPI transaction value was 200 lakh crore which was just 1 lakh crore in FY 2017-18, clocking a CAGR of 138%. This value will be ravishing in the current FY as in the first 5 months, UPI has recorded a transaction value of 101 lakh crore.

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UPI Grabbing More Records

The finance ministry of India referred to ACI Worldwide Report 2024 – it highlighted that 49% of real-time digital payments made worldwide are from India.

In August 2024, 62.4% of the UPI transactions were P2M (person-to-merchant) transactions and 85% of the transactions valued 500 and up. With this, UPI has touched another global record.

Nirmala Sitharaman, the union finance minister mentioned that 45% of digital payments made globally are through UPI. She also praised UPI for innovative solutions that got instant acceptance from the users. She also hopes that banks will play a more crucial role by providing complete support to users and digital payment solutions.

Also, Check India’s UPI Bags New Record: ₹81 Lakh Crore Transfer in 4 Months

End Words

The numbers show that India will achieve a stronger position in global financial markets and indeed, UPI will have a huge contribution to this success. The finance ministry is overwhelmed with UPI's performance and they are hoping for brighter days. There are plans for an inclusive advanced payment solution that can open new doors and strengthen India’s position globally. Therefore, we will get more reasons to take pride in our digital payment solutions.

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