The National Payments Corporation of India, which runs the popular UPI payments, has seen a 37 percent growth in net profits at the consolidated level during the financial year ending March 2024.
The financial institution that manages most digital payment settlements in the country on behalf of the Reserve Bank of India reported a net profit of Rs 1,134 crore in FY 24, a growth of 37 percent over FY 23. It had reported a net profit of Rs 828 crore in the last financial year.
NPCI’s hefty profits come even as most payment fintechs in the country struggle to make profits. However, a few lending and stock broking fintechs also make huge profits. For instance, Zerodha made close to Rs 3,000 crore in profits.
The organisation established under the aegis of the Reserve Bank of India is registered as a not-for-profit organisation and hence mentions net profit as surplus in the annual financial statement. NPCI is owned by a consortium of banks.
The company has registered a 42 percent growth in consolidated revenue at Rs 3,279 crore for FY 24. It had reported Rs 2,311 crore revenue in FY 23. NPCI earns a small commission from banks for facilitating UPI payments.
Around 80 percent of all digital transactions in the country happen through UPI platform. More than 35 crore unique customers use UPI, doing almost 15 billion transactions in a month worth over Rs 20 lakh crore. It is the world’s most popular real-time mobile payments system.
NPCI also has two subsidiaries, NIPL (NPCI International Payments Limited) and NBBL (NPCI Bharat Billpay Limited), which together reported .
NBBL aggregates all the utility bill payments online, connecting all the billers and customers on third-party payment apps. NIPL works to expand the reach of NPCI internationally through commercial arrangements with foreign financial institutions.
These two companies together reported Rs 151 crore in revenue and Rs 40 crore in net profits.
NPCI also acts as the settlement house for IMPS, NACH and Aadhaar-based AePS. It also runs the domestic card network Rupay, which is by far the country’s most popular debit card network.
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