Unified Payments Interface (UPI) transactions rose 3.95 per cent month-on-month (MoM) to $14.44 billion in July from $13.89 billion in the previous month. On a year-on-year (YoY) basis, the number of transactions increased by 49%.

According to the data released by the National Payments Corporation of India, the volume of UPI transactions in July was 2.8 per cent higher than Rs 20.07 lakh crore in June - Rs 20.64 lakh crore. On a year-on-year (YoY) basis, the transaction volume grew by 35%. This comes after UPI transactions declined by 1% month-on-month from 14.04 billion in May to 13.89 billion in June.

It is noteworthy that the total number of transactions processed by UPI crossed 100 billion last year. Earlier this year, Reserve Bank of India Governor Shaktikanta Das pointed out that India now represents about 46% of the world's digital transactions, and attributed this growth to the widespread adoption of UPI.

Last month, fintech giants PhonePe and Google Pay reported a slight decline in the value and volume of transactions through UPI in June. On the contrary, their biggest rival Paytm registered growth during the same period.

As per the data released by NPCI, by volume, PhonePe had 48.3% market share in UPI in the month of June, followed by Google Pay and Paytm with 36.7% and around 8% market share, respectively.

At the same time, NPCI and the Government of India are actively promoting UPI. NPCI, UPI Lite, Credit Lines on UPI, UPI Lite X, Tap & Pay, Hello! Schemes like UPI and BillPay Connect have also been launched.