Value of UPI transactions drops marginally in November; volume remains the same

After touching a new high of Rs 12.11 lakh crore in October, UPI transaction value for the month of November has come in at Rs 11.90 lakh crore while the transaction count has remained the same - 7.30 billion as it was in October.

The rise in the October transaction values was fuelled by the festive rush and volume spending. However, the November numbers, in terms of count and value are above that of September with transaction value at Rs 11.16 lakh crore and count at 6.78 billion.

According to the RBI’s Payment Vision 2025, UPI is expected to register an average annualised growth of 50 percent.

Meanwhile, the National Payments Corporation of India (NPCI) is considering a volume cap for third-party app providers (TPAP) of 30% to prevent concentration risk.

The UPI market is dominated by players like Google Pay and PhonePe, with a combined market share exceeding 80 per cent. Paytm Payments Bank also maintains its position as the top UPI beneficiary bank in the country, with 1,614.03 million transactions recorded in October 2022.

Also Read | Level 1, Level 2, Level 3: How NPCI plans to cap market share of apps like PhonePe and Google Pay

If the NPCI implements its volume cap proposal, users will not be able to make unlimited transactions through Google Pay, PhonePe or other UPI applications. The NPCI sent a 30% volume cap proposal in last month for approval from the Reserve Bank of India (RBI) to avoid the monopoly of any UPI app.