News · via Entrackr

UPI hits record 23.66 billion transactions in July

Volumes are up 22 percent on last year and value crossed Rs 29.88 lakh crore, with a daily run rate of 763 million transactions.

The signal
  • 23.66 billion transactions in July, the highest monthly volume recorded.
  • Value of Rs 29.88 lakh crore, up 3.3 percent on June and 19 percent year on year.
  • Daily average of 763 million transactions worth about Rs 96,383 crore.
  • Volume grew 4.1 percent month on month and 22 percent year on year.

UPI processed 23.66 billion transactions in July, its highest monthly volume on record, worth Rs 29.88 lakh crore. Volume rose 4.1 percent from June’s 22.72 billion and 22 percent year on year. Value grew 3.3 percent on the month and 19 percent on the year.

The daily average ran at 763 million transactions worth roughly Rs 96,383 crore. Internationally, the Maldives launched a real time payment corridor with India, taking merchant payment acceptance to 10 overseas markets.

The detail worth pausing on is the gap between volume growth and value growth. Transactions grew 22 percent year on year while value grew 19 percent, which means the average transaction size continues to shrink. UPI is being used for progressively smaller payments.

For consumer brands that trend has been running long enough to plan around. Falling friction on small value digital payments is part of what makes a Rs 200 quick commerce basket viable, and it steadily erodes the case for cash on delivery even at low ticket sizes.

If you still carry a meaningful cash on delivery share, particularly in value categories, the cost of that is worth revisiting. Prepaid orders remove refusal risk at the door, settle faster and reduce reverse logistics, and the incentive required to shift a customer to prepaid is generally smaller than the cost of one refused delivery.

Source

Zane’s analysis draws on original reporting by Entrackr. Read the original report.

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