India’s digital payments landscape reached unprecedented heights in December 2024, with Unified Payments Interface (UPI) transactions hitting an all-time high in volume and value. According to the National Payments Corporation of India (NPCI), UPI recorded 16.73 billion transactions during the month, an 8 per cent increase from November. The total value of these transactions also rose by 8 per cent, reaching Rs 23.25 trillion.
The surge in UPI usage is attributed to a rise in person-to-merchant transactions, which have become a cornerstone of digital payments in the country. Daily UPI transactions increased to 540 million in December, up from 516 million in November, with a daily transaction value of Rs 74,990 crore. For the entire year of 2024, UPI volume grew by an impressive 46 per cent year-on-year to 172 billion transactions, while the total value rose by 35 per cent to Rs 247 trillion, compared to Rs 183 trillion in 2023.
Immediate Payment Service (IMPS) transactions also experienced an 8 per cent increase in December, with 441 million transactions worth Rs 6.02 trillion. Daily IMPS transactions climbed to 14.23 million, translating to a daily transaction value of Rs 19,405 crore. Although IMPS volume saw a 12 per cent year-on-year decline, its value rose by 6 per cent, signaling its continued relevance for high-value and urgent transfers.
FASTag transactions, used primarily for toll payments, grew steadily in December, with a 6 per cent rise in volume to 382 million and a 9 per cent increase in value to Rs 6,642 crore. Daily FASTag transactions also saw a modest uptick, reaching 12.32 million for the month. This marked a year-on-year (YoY) growth of 10 per cent in volume and 13 per cent in value, underscoring the increasing adoption of automated toll collection systems.
The Aadhaar Enabled Payment System (AePS) posted marginal growth, with transactions rising by 1 per cent to 93 million and the value increasing to Rs 24,020 crore. However, daily transactions dropped slightly to 3.02 million in December, compared to 3.08 million in November. On a yearly basis, AePS transactions recorded a slight decline, with a 1 per cent drop in volume and a 5 per cent fall in value, highlighting a plateau in its adoption.
