Aman Arora .

It's the first time in the last 6 months when the number of UPI transactions declined. In April it declined 20% MoM reaching below 1 billion. Any suggestions what insights one can derive from this trend?

Originally Posted Here

Mithun Shetty

Hadn't sending in general been on the decline during this period? While we might be paying for everything essential through upi, the number of things we're spending on is definitely down. My 2 cents.

Ankur Sharma

Well people are limiting the transactions and they have limited funds .. so this is evident

Harshala Chavan

Really? I thought it should have had increased as we are doing digital payments only. In my family, we never paid bills online. Now I have started using GPay and Amazon Pay extensively, and will continue to do so for all bill payments.

Sooraj Kumar R

Yea but how often are you going out & making these payments?

Harshala Chavan

I am making payments for grocery purchases, medical shops and all. Luckily near my locality digital is being accepted and people are afraid to take notes as such coz of virus. But yeah, overall there will be a drop coz of less purchases,but there are very fair chances that the adoption is increasing. We never used big basket, but now we are getting used to ordering from there. Might as well not go to supermarkets maybe.

Sooraj Kumar R

Yes, the decline is likely temporary:)

Too early to write off UPI. It's extremely simple to use, and will see increasing adoption.

Giri Thiyagarajan

Number of digital transactions would have increased but overall spend has drastically reduced . Shopping/Chat Shops/Hotel visits

Sooraj Kumar R

Yes but this chart shows about number of transactions, which also should have decreased only. A lot of people aren't making so many visits to sellers.

Giri Thiyagarajan

Correct, but my understanding is as of now people are buying only essentials , getting home delivered majority of them would have been UPI. Even those who has done these transactions in other mode would have switched to UPI now.

Sooraj Kumar R

Yes but again the number of transactions across any medium would be on the decline. We're not pulling out our wallets (hard or soft) as many times off late.

Giri Thiyagarajan

True, we need to check finer details. But i feel in cities online food ordering has taken a hit only for two weeks.

Varun Varadarajan

1. General spend reduction on e-commerce is a huge play here
2. Digital transactions have picked up at the micro market level, but this is a small change and for small amounts
3. Peer to peer money transfer has reduced in recent times where unnecessaryexpenses are kept to a bare minimum
4. We don't visit a lot of places where we use this, for example I use GPay at my regular eatouts in the local area which aren't open anymore
5. Huge factor: Food delivery apps, where this is majorly used is not in use for people staying and eating at home, instead of ordering lunch from offices.

Omkar Dravid

I am associated with large co operative bank... they have registered zero transactions on 22nd march (janata curfew), large no of upi transactions are done in cafeteria, chai tapari or canteens... the increase in these transactions will be very slow

Rajeesh Nair

The answer lies in the graph where most UPI transactions are made...

1) Online Shopping
2) Food Delivery Aggregators
3) Cab services
4) Shops Closed

I believe most of the UPI payments were made on e-commerce portals and because of the lockdown and sales drop in online orders, the UPI transactions also dropped...

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