Economic Survey 2023: UPI accounted for 52% of total digital transactions in FY22

The Economic Survey 2023 stated that Unified Payments Interface (UPI) accounted for 52 per cent of the total 8,840 crore financial digital transactions in FY22. The adoption of UPI has been on a gradual rise. The survey said that UPI accounted for 17 per cent of 3,100 crore of digital transactions in FY19, which had increased to more than 27 per cent of 4,600 crore digital transactions.

The survey stated that UPI-based transactions in value and volume terms were 121 per cent and 114 per cent respectively. In December 2022, UPI touched its highest-ever mark with 782 crore transactions worth Rs 12.8 lakh crore.

UPI processed 2,922 crore contactless merchants’ transactions with a total value over Rs 21.7 lakh crore in FY23 till December 2022.

The Economic Survey pointed out that the success of UPI is not restricted to India alone. NPCI is pushing for the adoption of UPI/RuPay powered apps in international markets such as Singapore, UAE, France, and the Netherlands among others.

The survey stated that the benefits of UPI became apparent during the COVID pandemic, especially for small and micro merchants.

It also said that tech companies are increasingly leveraging the power of UPI to expand the digital ecosystem. UPI opened up many opportunities for start-ups and e-commerce players that were aiming to elevate customer experience. Global players like Google, WhatsApp, Walmart, True Caller, Amazon, Uber etc. provide UPI services, it said.

UPI is expected to create a more inclusive ecosystem that can accommodate larger sections of the population in the future.

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