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India's Digital Payments Show Resilience Despite February Dip
1 Mar
Summary
- UPI transactions saw a 6% dip in volume and 5% in value during February.
- IMPS volume declined by 10% to 336 million transactions in February.
- Experts note digital payments are now core infrastructure, not just a growth story.
Digital payment systems in India experienced a noticeable moderation in February. Unified Payments Interface (UPI) transactions saw a 6% decrease in volume and a 5% dip in value compared to January, reaching 20.39 billion transactions worth Rs 26.84 trillion. This slowdown was partly attributed to fewer days in February.
Immediate Payment Service (IMPS) also reported a decline, with transaction volume down 10% to 336 million and value decreasing by 4% to Rs 6.42 trillion. Similarly, FASTag transactions fell by 6% in volume and 4% in value. Aadhaar Enabled Payment System (AePS) saw a 9% drop in transactions.
Despite the monthly dip, industry experts emphasize the growing resilience and permanence of digital payments. UPI's consistent scale, now accounting for nearly half of global real-time transactions, signifies its transition to core infrastructure. Daily transaction metrics for UPI showed an increase, indicating underlying strength. Annual comparisons reveal a significant year-on-year growth for UPI, up by 27% in volume and 22% in value against February of the previous year, highlighting the sustained adoption of digital payments by consumers and merchants alike.
