Google Reports UPI Payments Surge to Rs. 167 Lakh Crores in 2023, Signaling Rapid Growth in Digital Transactions
Google Pay and the National Payments Corporation of India (NPCI) are set to make a significant stride in the international payments arena as they collaborate to extend the reach of the Unified Payments Interface (UPI). In an official confirmation on Wednesday, both Google and NPCI revealed that they have inked a Memorandum of Understanding (MoU) for this ambitious venture. The agreement involves the collaboration of Google Pay India and NPCI’s subsidiary, NPCI International Payments Ltd (NIPL), to introduce UPI’s instant payment capabilities to global markets.
UPI has solidified its position as a dominant force in India’s digital payment landscape, fostering interoperability among popular payment apps like Google Pay, PhonePe, and Paytm. The sheer magnitude of UPI transactions is evident in the staggering value of Rs. 167 lakh crores processed in 2023, as reported by Google.
The primary focus of the MoU is to streamline digital payments for international travelers from India. The collaboration also aims to establish UPI-style digital payment infrastructure in other countries, as outlined in an official press release. Beyond facilitating international payments, Google and NPCI have broader aspirations, intending to leverage the UPI infrastructure to simplify cross-border remittances and enhance the efficiency of financial exchanges between nations.
Deeksha Kaushal, Director of Partnerships at Google Pay India, emphasized the transformative impact of UPI on economies, stating, “UPI has demonstrated to the world the step change that happens in economies with the introduction of interoperable, population-scale digital infrastructure, and each economy that joins such networks will create an impact beyond the sum of parts.” This collaboration between Google Pay and NPCI signifies a strategic move towards promoting seamless and globally accessible digital transactions.
According to the press release, the initiative will also help bring Indian customers to foreign merchants, reducing the need for credit or forex cards and instead allow UPI apps like Google Pay for international digital payments. “This strategic partnership will not only simplify foreign transactions for Indian travellers but will also allow us to extend our knowledge and expertise of operating a successful digital payments ecosystem to other countries,” Ritesh Shukla, CEO of NPCI International Payments Limited, said.
Last year, Google Pay introduced a UPI Lite feature on its platform that enables small-value digital payments with just one tap, without the need to enter the UPI PIN, as required in regular transactions. UPI Lite supports a maximum instant transaction of up to Rs. 200 at a time. Users can load their UPI Lite account with up to Rs. 2,000, twice a day.
In August, the Reserve Bank of India (RBI) increased the UPI Lite transaction limit from Rs. 200 to Rs. 500. The overall wallet limit, however, was retained at Rs. 2,000 only. A month later, NPCI said that UPI transactions had crossed the 10-billion mark in August. According to the NPCI data, number of UPI transactions stood at 10.24 billion on August 30. In value terms, the transactions amounted to Rs. 15,18,456.4 crore exchanging hands.