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The unified payments interface (UPI) market in India size is forecast to increase by USD 6,99,018 billion at a CAGR of 205.6% between 2024 and 2028. The Unified Payments Interface (UPI) market is witnessing significant growth due to the instant and seamless money transfer process it facilitates. With the increasing use of smartphone applications for shopping transactions, UPI has become a preferred mobile payment system for many consumers. However, the market also faces challenges such as security concerns, particularly with regards to the sensitive information exchanged during transactions. The authentication process must to prevent unauthorized access and fraud. While UPI offers the convenience of transferring money without the need for physical cash, it is essential to address these challenges to ensure user trust and market expansion. The growing trend of digital transactions and the increasing popularity of mobile payment systems make UPI a promising market for future growth.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The money transfers segment is estimated to witness significant growth during the forecast period. The increasing demand for instant money transfer in India is expected to increase the demand for UPI from end-users during the forecast period. The users of UPI can transfer money through their mobile devices round the clock, 24x7 and 365 days. In addition, UPI is a fast, hassle-free, and cheapest way of money transfer, which the user can do anytime from anywhere.
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The money transfers segment was valued at USD 303.00 billion in 2018 - 2022 and showed a gradual increase during the forecast period. In addition, UPI eliminates the risk of carrying cash. Moreover, money transfer/transaction can be initiated from any bank's UPI application. Also, it only requires the virtual ID of the payee to transfer the money. The process of transferring money by UPI is quite simple as there is no need for pre-addition/approval of the beneficiary; the transfer is made to the beneficiary's virtual ID. Furthermore, a single UPI application can be used for different bank accounts. The user simply needs to link their bank accounts to their UPI-based application. Also, there is no charge for transferring money to the beneficiary account via UPI. Hence, owing to these factors, the demand for UPI for transferring money is expected to increase during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Unified Payments Interface (UPI) Market: Revolutionizing Mobile Payment System in India The Unified Payments Interface (UPI) is a revolutionary mobile payment system that has taken India by storm. This innovative technology enables users to transfer money directly from their bank accounts to other bank accounts, bypassing the need for physical cash or cards. UPI is a smartphone application-based system that allows users to link their bank accounts to the app. The authentication process is secure, requiring users to enter their personal identification details, such as a UPI PIN or biometric verification, to authorize transactions. With UPI, transactions are processed in real-time, ensuring seamless settlement between parties. This technology supports both push and pull transactions, enabling users to send and receive money instantly. Over-the-counter payments and recurring payments for utility bills, school fees, and other expenses are also possible with UPI. The convenience of UPI has led to a significant increase in transaction count. Users no longer need to remember account numbers or carry credit or debit cards for transactions.
Moreover, the net banking and account details are also not required for UPI transactions, making it an attractive option for the unbanked population. UPI offers a secure and efficient way to transfer funds. Sensitive information, such as bank account details, is encrypted and protected. Transactions are confirmed instantly, providing users with peace of mind and convenience. The UPI market is expected to grow significantly in the coming years, as more and more users adopt this technology for their daily financial transactions. The ability to send and receive money instantly, without the need for physical cash or cards, makes UPI an essential tool for modern living. In conclusion, the Unified Payments Interface (UPI) is transforming the way Indians transfer funds. With its secure authentication process, seamless settlement, and convenience, UPI is becoming the preferred choice for mobile payments. Whether it's paying utility bills, sending money to family and friends, or making over-the-counter payments, UPI offers a simple and efficient solution.
Instant and smooth money transfer process is notably driving market growth.The Unified Payments Interface (UPI) is a smartphone application-based mobile payment system that enables seamless settlement of transactions between bank accounts. Operating on the IMPS platform, UPI facilitates instant fund transfers, providing users with the flexibility to make payments at any time and from any location. Unlike traditional methods, UPI transactions are not subjected to restrictions due to holidays or odd hours. Even during bank walkouts, UPI payments continue uninterrupted. Moreover, once registered, users can immediately initiate transactions, unlike NEFT and IMPS where registration does not allow for instant money transfers. The UPI system ensures fast and secure transactions by implementing a authentication process to protect sensitive information. Physical cash handling is minimized, making it a convenient and efficient alternative for transferring funds. Thus, such factors are driving the growth of the market during the forecast period.
Growing emergence of mobile apps for shopping transactions is the key trend in the market.The use of smartphone applications for transferring money between bank accounts has gained significant traction in the digital economy. Amidst the ongoing pandemic, the preference for contactless transactions has led to mobile payment systems like Unified Payments Interface (UPI). These apps facilitate seamless transactions for both online and offline purchases. As more consumers adopt digital payment methods, the market for mobile payment systems is poised for growth. The convenience of using mobile apps for financial transactions, coupled with the authentication process ensuring the security of sensitive information, is making physical cash increasingly obsolete. Thus, such trends will shape the growth of the market during the forecast period.
UPI payment frauds is the major challenge that affects the growth of the market.The Unified Payments Interface (UPI) market in India has gained significant traction with the widespread use of smartphone applications for transferring money between bank accounts. UPI is a mobile payment system that enables seamless transactions between different banks using virtual addresses instead of entering account numbers and IFSC codes. However, with the convenience comes the risk of fraud. Two common types of UPI fraud include misleading UPI handles and request money fraud. Fraudsters create fake UPI handles with names similar to NPCI, UPI, or BHIM to deceive users into revealing their sensitive account details through a fraudulent UPI application. Another scam involves users receiving requests to scan QR codes or enter their UPI PIN to receive a prize, leading to unauthorized transactions. To avoid falling victim to these frauds, users must verify the authenticity of the UPI handle before making any transactions. Additionally, be cautious of unsolicited requests for QR code scans or UPI PIN entries, even if they appear to be from reputable sources. Always double-check the recipient's UPI ID before initiating a transfer. By following these precautions, users can ensure secure and hassle-free UPI transactions. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc.: The company offers UPI transfers or mobile recharges, bills and payments to businesses.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Unified Payments Interface (UPI) is a mobile payment system that enables seamless settlement between bank accounts through a smartphone application. It allows users to transfer money using their bank accounts without the need for physical cash or visiting banks. UPI uses an authentication process to ensure sensitive information remains secure during transactions. Users can initiate both push transactions, where they send money to another user's account, and pull transactions, where they receive money into their account. Over-the-counter payments, recurring payments for utility bills and school fees, and even credit and debit card transactions can be processed using UPI. UPI supports instant payments with swift processing and settlement, making it a popular payment method for retail digital transactions. With the use of Virtual ID, personal identification is simplified, and transactions are confirmed with an account number and confirmation code. UPI supports real-time gross settlement and immediate payment systems, ensuring quick and secure fund transfers. UPI's open-source API and cross-operability make it a versatile digital payment system, allowing integration with various mobile payment apps and digital public infrastructure. The system offers customer satisfaction and operational efficiency, reducing transaction costs and catering to the needs of the unbanked population. UPI's popularity continues to grow, making it a preferred choice for digital finance and real-time transfers.
Market Scope |
|
Report Coverage |
Details |
Page number |
127 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 205.6% |
Market growth 2024-2028 |
USD 6,99,018 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
130.6 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Amazon.com Inc., Apple Inc., Axis Bank Ltd., Bank of Baroda, Bharti Airtel Ltd., Central Bank of India, Dreamplug Technologies Pvt. Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Kotak Mahindra Bank Ltd., Meta Platforms Inc., One MobiKwik System Pvt. Ltd., One97 Communications Ltd., Reliance Industries Ltd., Samsung Electronics Co. Ltd., South Indian Bank Ltd., State Bank of India, Union Bank of India, Walmart Inc., and Yes Bank Ltd. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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