Trend and Growth Rate Analysis of Unified Payment Interface (UPI)

Abstract

The Unified payment Interface (UPI) system was launched in India in April 2016 as a digital Payment system. Among the various digital payment modes, UPI has gained significant importance in the evolving world of digital payments in India. UPI provides a platform that simplifies online payment processes, and its widespread adoption can be observed through the volume and value of transactions completed using UPI. The main purpose of this study is to assess the performance of UPI in the current digital payment landscape of the Indian economy by analysing the trends and growth rates of UPI by taking into consideration the volume and value of UPI transactions over time. The study uses secondary data, collected from the official website of the National Payments Corporation of India (NPCI), and reviews existing literature and journal articles related to the study of trends in digital payments. The analysis focuses on transaction data from 2016 -17 to 2023-24, covering eight financial years, in order to identify trends, yearly growth rates, fluctuations, and the key reasons behind these changes. The trend and growth patterns are examined using tables, charts, and trend line analysis. The findings reveal an increasing trend in UPI based on both volume and value of UPI transactions, although the growth rate has fluctuated, showing both increases and decreases year by year. This research is valuable for understanding the impact of UPI on the digital payment system in India, and the trend patterns can provide important insights for the government in formulating future policies for the payment system, as well as for other stakeholders.