UPI transaction volume drops in May but total value climbs

The number of transactions based on the Unified Payment Interface (UPI) declined for the second month in a row but the value of transactions registered an uptick, showed data from the National Payments Corporation of India (NPCI).

The number of transactions fell 6% for May to 733.54 million from 781.79 million in April. The total transaction value jumped 7% to Rs 1.52 lakh crore from Rs 1.42 lakh crore, NPCI data show.

The volume of UPI-based transactions on mobile payment app BHIM, developed by NPCI, increased to 15.77 million transactions in May from 15.15 million the previous month. The transaction value increased to Rs 6,627 crore from Rs 6,583 crore.

This shows the lead other mobile wallets have in promoting UPI-transactions. Google Pay recorded the highest value of transactions at Rs 49,700 crore for April, followed by Flipkart-owned PhonePe and Alibaba-backed Paytm. These three accounted for over 90% of UPI transactions for April.

The NPCI data also showed a drop in the Aadhaar-enabled Payment System (AePS), which allows interoperable financial transactions at a Point of Sale or MicroATM. The transaction value for AePS fell to Rs 9,228.59 crore in May from Rs 9,351.17 crore in April.