The month of June recorded an increase of 267.9 million in the number of transactions and saw the highest number of average transactions in a day.
The transaction value on the Unified Payments Interface (UPI) stood at Rs 5.47 lakh crores in June 2021, up by 2.1x compared to the same month in the previous year. Overall, transaction volumes increased by 2 times over the last year to 2.81 billion in June. While UPI payment volumes grew by 10.6% in June 2021 over the previous month, the UPI transaction value went up by 11.6% compared to May.
This steep increase comes after a drastic slump in both metrics in April, given several state-imposed lockdowns due to the second wave of the COVID-19 pandemic.
Key observations
1. Increase over May: The number of transactions increased by 267.9 million in June, whereas the total amount transacted went up by Rs 56,734 crores. In the previous month (May 2021), the volume of transactions had decreased by 100.4 million and the amount transacted declined by Rs 3,024 crores.
2. Average transactions per day: Around 93.6 million transactions were completed and ₹18,246 crores was transacted on an average per day in June. The average number of transactions per day in June 2021 was the highest till date.
3. Size of transaction: The average amount exchanged per transaction increased marginally over the previous month to ₹1,950. However, this is a slight YoY decline from ₹1,958 in June 2020. The average amount per transaction fell to its lowest in the past year in November 2020, to ₹1,769.
4. Banks on UPI: Three more banks onboarded UPI payments in June 2021, totalling 227 banks. The nationwide lockdown due to the pandemic began at the end of March 2020 and lasted till mid-May after which relaxations have gradually come into place. It’s possible that more banks began UPI payments due to unprecedented immobility, along with a need to limit human contact, which meant a natural move to digital payments.
Also Read:
- UPI Payments Of Rs 50 For Gaming To Be Banned: Report
- UPI Market Share: Players To Restrict On-Boarding And Cashbacks If In Breach Of 30% Cap
- UPI Apps Are Allegedly Being Used To Bribe Voters In Tamil Nadu Elections
