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India’s digital payments saw a 44% CAGR in FY24, according to the Finance Ministry

Rekha Prajapati September 21, 2024 07:27 PM

The Finance Ministry stated on Friday that there has been a notable surge in digital payments in India, with the total volume of digital payment transactions rising from 2,071 crore in FY 2017–18 to 18,737 crore in FY 2023–24 at a Compounded Annual Growth Rate (CAGR) of 44%.

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Additionally, it said that the transaction volume for the current financial year 2024–25 has surpassed 8,659 crore during the last five months (April–August).

According to ministry statistics, at a compound annual growth rate of 11%, the value of transactions increased from Rs 1,962 lakh crore in FY17–18 to Rs 3,659 lakh crore in FY23–24.

Additionally, the overall transaction value increased to an astounding Rs 1,669 lakh crore in the last five months (April-August) of the current fiscal year 2024–25.

Millions of people can now make safe, smooth, real-time payments thanks to initiatives to hasten the adoption of rapid payment systems like the Unified Payments Interface (UPI), which has completely changed the way financial transactions are carried out.

At a compound annual growth rate of 129%, UPI transactions increased from 92 crore in FY 2017–18 to 13,116 crore in FY 2023–24.

Moreover, the transaction volume hit 7,062 crore in the last five months (April–August) of the current financial year, 2024–25.

According to ministry statistics, the value of UPI transactions increased at a compound annual growth rate (CAGR) of 138% from Rs 1 lakh crore to Rs 200 lakh crore.

Additionally, the overall transaction value increased to an astounding Rs 101 lakh crore in only the previous five months (April-August FY2024–25).

In August 2024, P2M transactions—payments made in person to a merchant—accounted for 62.40 percent of all transactions, with 85 percent of those transactions having a value of up to Rs 500.

The Finance Ministry emphasized that, according to the ACI Worldwide Report 2024, about 49% of all real-time payment transactions worldwide took place in India in 2023.

The Ministry commended its Department of Financial Services and said that it is still dedicated to developing safe, scalable, and accessible digital payment solutions. It also plans to continue looking for new ways to improve India’s standing in the international financial system.