In India, digital payment transactions jumped from 8,839 crore in FY 2021-22 to an impressive 18,737 crore in FY 2023-24, reflecting a remarkable 46% CAGR (Compound Annual Growth Rate). A significant part of this growth can be attributed to the Unified Payments Interface (UPI), which experienced a phenomenal CAGR of 69%, reaching 13,116 crore transactions in FY 2023-24 and capturing more than 70% of the total digital payment market. The “Incentive Scheme for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M)” has been a key player in this expansion, motivating people all over the country to go digital with their transactions.
Key Highlights of Digital Payment Growth (FY 2021-22 to FY 2023-24)
1. Growth in Digital Transactions
Total Digital Payments
- FY 2021-22 – 8,8
- Transactions (46% growth)
UPI Transactions
- FY 2021-22 – 4,597 crore transactions
- FY 2023-24 – 13,116 crore transactions (69% CAGR)
- UPI Share in Total Digital Transactions (FY 2023-24) – 70%
2. Factors Driving Digital Payment Growth
UPI’s Dominance: Rapid adoption of UPI for seamless and instant transactions.
Expansion of Digital Payment Infrastructure
- Widespread adoption of QR codes & POS terminals.
- Increased participation of Third-Party App Providers (TPAPs).
Increase in Banks Offering Digital Payment Services
- FY 2021-22 – 216 banks.
- FY 2023-24 – 572 banks.
3. Role of the Government in Promoting Digital Payments
- DIGIDHAN Mission: Established to strengthen India’s digital payment ecosystem.
Incentive Scheme for Banks (ISB) Portal
• Focused on building awareness and ensuring easy data collection.
• Inspires banks to advocate for UPI and RuPay payment methods.
• Stakeholder Consultations: Working closely with banks and fintech partners to enhance implementation.
