Indian Digital Payment Volumes Clock Record Highs in FY24

Indian Digital Payment Volumes

Indian digital payment volumes are indicative of its mushrooming online payment ecosystem with a historic milestone in FY24. During the year, the sub-continental country saw the processing of over 13,300 crore transactions, a massive 27% jump from FY23. The massive popularity of UPI, IMPS, and AePS transactions underscore India’s progress in digital financial inclusion. Online payments done through UPI accounted for nearly 76% of the total volume, reflecting rapid adoption across user segments.

• According to the Ministry of Electronics and IT (MeitY), the value of digital transactions grew by 16% YoY, reaching ₹2,428 lakh crore in FY24 across all digital modes.
• The National Payments Corporation of India (NPCI) continues to innovate by introducing UPI Lite, UPI123Pay, and UPI for credit cards, broadening access for rural and feature phone users.
• Locally collaborative payment methods like Aadhaar Enabled Payment System (AePS) and even IMPS also saw high adoption among consumers, especially in semi-urban and rural zones, contributing to the government's Digital India vision.
• The government credited initiatives like PMGDISHA, DigiDhan Mission, and DigiYatra as key enablers in increasing digital inclusion and financial transparency.
• According to ACI Worldwide, since 2019 Indian digital payment volumes for UPI have gone up exponentially, with India contributing 46% of the world’s real-time payments. 
• Green The Indian Government’s Digital India initiative, along with policies such as zero MDR (Merchant Discount Rate) on UPI and Rupay, have contributed to the exponential rise of cashless payments. NPCI is now expanding UPI internationally to the UAE, Singapore, and France.
• According to Fortune India, QR code-based payment method adoption by merchants has crossed the 10 crore mark. UPI and USSD channels dominated Indian digital payment volumes, with real-time payments contributing to over 75% of all retail digital transactions.