UPI Transactions Likely To Reach 1 Billion Per Day By 2026-27: Report
UPI is projected to account for 90% of the total transaction volume in retail digital payments over the next five years.
UPI transactions are likely to reach 1 billion per day by the year 2026-27, accounting for 90% of the retail digital payments in India, according to a report released by PwC India.
In its report titled, 'The Indian Payments Handbook – 2022-27', PwC India said UPI accounted for about 75% of the total transaction volume in the retail segment during 2022-23.
UPI is projected to account for 90% of the total transaction volume in retail digital payments over the next five years, news agency PTI quoted the report as saying.
The Indian digital payments market saw steady growth at a CAGR of 50% (volume-wise) and is expected to reach 411 billion transactions in FY 2026-27 from 103 billion in FY 2022-23, the report said.
'It is estimated that UPI will record 1 billion transactions per day by FY2026–2027, going from 83.71 billion transactions in 2022-23 to 379 billion transactions by 2026-27,' it added.
Mihir Gandhi, Partner and Payments Transformation Leader, PwC India, said that in the next five years, the payments industry is expected to focus on ecosystem expansion and new use cases for existing payment platforms.
"Areas like embedded and ecosystem finance, digital lending based on payment transactions and offline payments will drive the next phase of growth for the payments industry. In the ever-evolving Indian payments landscape, innovation and inclusion are paving the way for a seamless digital economy,' Gandhi said.
The revenue for credit card issuance increased by 42% in 2022–2023 compared to 2021–2022 and is likely to grow by a CAGR of 33% for the next five years, it added.
