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Of the total 8,840 crore digital financial transactions in India—with a total value of Rs 126 lakh crore—around 52% were made via Unified Payments Interface (UPI) in FY22, the Economic Survey 2022-23 noted. 

In FY19, UPI accounted for 17% of the country’s total 3,100 crore digital transactions while 2020-21 saw it rise to 27% (1,250 crore transactions out of the total of 4,600 crore), the government noted in the Economic Survey ahead of Union Budget 2023.

On average, between FY19 and the calendar year 2022, the growth in UPI-based transactions—both in terms of value and volume—has been 121% and 115%, respectively. In December 2022, UPI crossed 782 crore transactions worth Rs 12.8 lakh crore—its highest ever. 

Further, UPI has processed 2,922 crore contactless merchants’ transactions with a total value of over Rs 21.7 lakh crore in FY23 (till December 2022). 

The survey noted that tech companies are increasingly leveraging the power of UPI to expand the digital ecosystem, which has led to a significant acceleration in the pace of financial inclusion. 

“UPI has opened up many opportunities for startups and ecommerce players to develop innovative solutions that elevate the customer experience. The open systems have enabled global players like Google, WhatsApp, Walmart, Truecaller, Amazon, Uber, etc, to provide UPI services,” it said.

Further, the survey noted that wide usage of the digital payment system of UPI has enabled the “formalisation” of transactions, for even the smallest of amounts. 

Greater formalisation will enhance the productivity of individuals and businesses in the economy through improved access to credit and efficiency gains in their operations, it said.