India’s UPI Set To Record 1 Billion Daily Transactions By 2026-27: Report

The exponential growth of UPI transactions paints a vivid picture of the nation’s evolving payment habits. With a compounded annual growth rate (CAGR) of 50 per cent, the total number of online transactions is projected to surge from 103 billion in FY 2022-23 to 411 billion in FY 2026-27. UPI transactions, in particular, are expected to experience a substantial rise from 83.71 billion in 2022-23 to a staggering 379 billion transactions by 2026-27, according to the report.

Credit Card segment

According to the report, credit card transactions are projected to surpass debit card transactions by FY 2024-2025, marking a significant turning point. This shift can be attributed to the convenience and versatility offered by credit cards, making them increasingly favoured by consumers. Over the next five years, credit card issuance is expected to record a CAGR of 21 per cent.

The report emphasises that the payments industry will focus on expanding the ecosystem and developing new use cases for existing payment platforms in the coming years. Areas such as embedded and ecosystem finance, digital lending based on payment transactions, and offline payments are predicted to drive the next phase of growth in the payments industry.

Launched in 2016 by the National Payments Corporation of India (NPCI), UPI was introduced as a real-time payment system that aimed to simplify peer-to-peer transactions and facilitate seamless digital payments.