UPI processes $2.2 bn transactions in December 2020

The unified payments interface or UPI continues to break records in a year marred by the Covid-19 pandemic. 

After breaching the 2 billion transaction volume mark in October, the platform registered an 106% increase in transaction value at Rs 4,16,176.21 crore in December 2020 compared to Rs 202,520.76 crore  posted during the same month a year before. 

The volume of UPI transactions stood at 2.23 billion in December 2020, up from 1.3 billion in 2018, according to data released by the National Payments Corporation of India (NPCI).

In November, transaction volume jumped 6% month-on-month to 2.21 billion, compared to 2.07 billion in October and 1.8 billion in September. The overall value of transactions stood at Rs 3,90,999.15 crore and Rs 3,86,106.74 crore in November and October respectively.

There are 207 banks live on UPI platform.

In an effort to boost payments in remote areas, NPCI also introduced a new RuPay contactless feature last month, which is expected to help customers complete transactions despite poor or absent network connectivity. The new RuPay card also comes with a reloadable wallet feature to allow customers to store money.

Called as the RuPay National Common Mobility Card (NCMC) offline wallet, the card can be utilised for ticket payments for everyday tasks such as metros, bus tickets and cab fares. The contactless or offline card for retail payments has been launched on a pilot basis. 

Recently, NPCI said it would cap the volume of third-party UPI transactions to 30% of overall transactions through the payment system, effective January 1, 2021. Existing third party apps such as Google Pay, PhonePe and others will get two years to comply with the order. 

The retail payments regulator also completed the private placement of 4.3% of its equity shares, adding 19 new shareholders to its cap table, including digital payment companies One Mobikwik, Paytm Payments Bank, Amazon Pay and PhonePe.