Digital payments have grown exponentially in recent years. Among all online transactions, United Payment Interface(UPI) is the most popular online mode of transactions due to ease of use. But from the last two months, there is a downfall in UPI payments. In May 2021, NPCI recorded a 4% decline in UPI transactions.
UPI Statistics of May 2021
UPI transactions have become very popular in India due to cross-platform easy transactions. You don’t require complex details of the receiver to send money via UPI. You just need a UPI that is short and easy to remember.
In May month, UPI saw a drop of 4.16% to 2.53 billion transactions. Overall, users exchanged Rs 490638 crore via UPI, as per the details revealed by NPCI via its official Twitter handle.
For the last two months, UPI is observing a drop in its value and volume. NPCI revealed that UPI transactions recorded the best performance in March when 2.73 billion transactions were completed to exchange over Rs 5,04,885 crore value.
In April month, NPCI saw a marginal decline in volumes of transactions but it did not affect the overall value that much. May month reported a major downfall when compared with April 2021.
As per the data revealed by NPCI, there is a drop of 4.16% in volume and 0.61% in value compared to April month statistics.
PhonePe Leads the UPI Transactions in April Month
Although there is a drop in UPI transactions, it is not alarming at all. We all know that India is badly affected due to the second covid-19 wave. There are no business activities in India during May 2021. The whole country is in complete lockdown. So, in such a worst condition, 3-4% decline is inevitable.
UPI is still performing better compared to the covid first wave timing in April 2020. At that time, UPI observed a 20% downfall in transactions. That is a huge number compared to the 4% downfall in May 2021.
NPCI has not yet released the market share of third-party apps for May. But, PhonePe is leading the market share in April 2021 UPI transactions. The app contributed 45% of overall UPI transactions in April 2021. Google Pay is a distant second position holder with a total market share of 34.3%. Paytm ranks third with a 12.14% market share in April.
It’s worth noting that NPCI has already released a new rule in which the market share of all third-party UPI apps will be capped to 30%. However, the regulating entity will also grant exemption to the top apps to comply with the new rules.
Meanwhile, NPCI is going global with its UPI transactions. In April month, it tied up with Financial Software and Systems and founded a new firm named NIPL(NPCI International Payments Limited).