{"id":1764,"date":"2019-07-10T13:06:08","date_gmt":"2019-07-10T07:36:08","guid":{"rendered":"https:\/\/rzpwp.blog\/?p=1764"},"modified":"2025-02-12T17:58:25","modified_gmt":"2025-02-12T12:28:25","slug":"upi-transactions-trends-june","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/upi-transactions-trends-june\/","title":{"rendered":"UPI Made a Solid Comeback This June"},"content":{"rendered":"

We\u2019re back with yet another UPI story! And, we spent some extra time and effort into understanding how India transacted in the month of June. This story is particularly exciting for us to tell because we made some keen observations since there was a dip in the UPI transactions in the month of May.<\/span><\/p>\n

By now, UPI needs absolutely no introduction. We\u2019ve all used UPI in some shape or form to make a digital transaction. We\u2019re all familiar with Google Pay, PhonePe, and other UPI apps, and we love to use these apps to make payments these days. It\u2019s only fair to observe how India transacts digitally since UPI created a finch revolution in India.<\/span><\/p>\n

UPI (Unified Payments Interface) being an instant, real-time payments system has pretty much become one of the most preferred payment modes today. Why? Only because of its mobile-first design and approach. Things have gotten so much easier since the dawn of UPI, as far as payments are concerned.<\/span><\/p>\n

Last month, we talked about UPI transactions falling by 6% in May<\/a><\/strong>, at the industry level. And we were as surprised as the next person was. But, considering the pattern that was observed for the last six months, we knew the dip was going to be temporary. Or so, we predicted.\u00a0\u00a0<\/span><\/p>\n

Types of UPI transactions<\/b><\/h2>\n

To understand the trends, let\u2019s talk more about the types of UPI transactions.<\/span><\/p>\n

    \n
  1. P2P UPI transaction (Person to Person)<\/b> – transaction made between two people\u00a0<\/span><\/li>\n
  2. P2M UPI transaction (Person to Merchant)<\/b> – transaction made between a person and a merchant<\/span><\/li>\n<\/ol>\n

    We considered P2M transactions alone because they better reflect the growth of UPI. This is because P2M transactions aren\u2019t carried out solely for the sake of rewards and incentives. Razorpay, being a payments company, observed UPI based P2M transactions from big names like Ibibo Group, IRCTC, Swiggy, BookMyShow, and many, many more.\u00a0<\/span><\/p>\n

    We were able to draw some cardinal patterns and observations based on the huge volumes of transactions that took place via the Razorpay platform.\u00a0<\/span><\/p>\n

    So, what happened in June? Let\u2019s find out!<\/b><\/p>\n

    Since January 2019, we\u2019ve seen a consistent rise in the transactional value as well as the volume of UPI, no doubt. Like we mentioned earlier, we did observe a dip in the month of May, which we predicted would be temporary. And we were right!<\/span><\/p>\n

    \"UPI<\/p>\n

    On the Razorpay platform, we noticed UPI transactions having taken a dip by 13% in May, came back to take its place in June. For a moment, let\u2019s completely disregard the plunge in May. In that case, doesn\u2019t the June UPI trend put UPI transactions back on the scale? Definitely!\u00a0<\/span><\/p>\n

    In that case, May\u2019s UPI trend is a deviation from the pattern. Many factors at the topmost level contributed to this devotion. But now, it looks like UPI is back to settle scores and make up for the lost time.<\/span><\/p>\n

    App wise UPI trend in the month of June – Stating the obvious\u00a0<\/b><\/h2>\n

    Ever since UPI gained popularity, many apps hit the market to facilitate UPI and provide UPI as a service. We all know these apps; we\u2019re all fond of these apps.\u00a0<\/span><\/p>\n

    UPI apps have made digital transactions like a walk in the park. All you have to do is pick up your phone, enter the payee\u2019s number\/ID or scan the QR code. And you\u2019re good to go!\u00a0<\/span><\/p>\n

    So, let\u2019s take a look at some numbers and understand how much of a contribution each of these UPI apps have made.<\/span><\/p>\n

    \"Contribution<\/p>\n

    We went through high volumes of UPI transactions to identify which app contributed the most.<\/span><\/p>\n

    Of course, <\/span>58%<\/b> of total UPI transactions were made via <\/span>Google Pay<\/b>, giving the app its rightful place at the top. Remind you; the app has also been consistently on the top of its game for quite some time now. It wouldn\u2019t be wrong to say that it\u2019s not wavering from its place any time soon!<\/span><\/p>\n

    PhonePe<\/b> contributed a total of <\/span>25%<\/b> of UPI transactions, keeping its second place, the same as the month of May. <\/span>Paytm<\/b> went up a spot as about 8% of UPI transactions were made via the app, pushing BHIM to the 4th place as it came through with about 6%.<\/span><\/p>\n

    Our honorary mentions are the bank UPI apps.<\/span><\/p>\n

    ICICI UPI app at 1.22% and SBI, Axis, and HDFC UPI apps maintained the same order as the May month, at 0.29%, 0.17%, 0.07% respectively.<\/span><\/p>\n

    Let\u2019s check back next month to see if this changes!<\/span><\/p>\n


    \n<\/b>UPI app wise growth<\/b><\/h2>\n

    While we\u2019re talking about UPI<\/a>\u2019s growth, let\u2019s also look into how much UPI apps have grown.<\/span><\/p>\n

    \"UPI<\/p>\n

    Taking into consideration the volume of UPI transactions as well as frequency and adoption from the month of May, many UPI apps gained momentum as they bounced back from May\u2019s one-off downward trend.<\/span><\/p>\n

    Google Pay<\/b> saw marginal growth in May, whereas it grew by <\/span>10.5% in June<\/b>. You may wonder, 10.5% is not really a significant number. But it is. Google Pay is the most used and highly preferred UPI app over any other app. Which means, its adoption rates are already up there. So, if the app grows by 10%, it\u2019s still a big deal.<\/span><\/p>\n

    From no growth or rather negative growth, <\/span>Paytm<\/b> grew by a whopping <\/span>60%<\/b> in June, while <\/span>PhonePe<\/b> grew by<\/span> 21%<\/b>.\u00a0<\/span><\/p>\n

    Amongst the bank UPI apps, Axis UPI app took a blow as it fell by 11%, whereas SBI, ICICI, and HDFC saw a rise by 18.6%, 5.8%, and 5% respectively.<\/span><\/p>\n

    Let\u2019s also remember that the 6% plunge of UPI in May took a toll on the growth of UPI apps, and not the UPI apps itself. Of course, preferences of consumers change from time to time, but since UPI came back to form in June, its growth reflected in the UPI apps as well.<\/span><\/p>\n

    UPI contributions across regions<\/b><\/h2>\n

    India loves UPI, and we\u2019ve all established that. But what parts of India transact using UPI the most? We did some digging on the Razorpay platform and here\u2019s what we found out.<\/span><\/p>\n