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Mumbai Mumbai: Unified Payments Interface (UPI) transactions have grown at a staggering 75 per cent compound annual growth rate (CAGR), while UPI spends have grown at 68 per cent CAGR in the period August 2019-August 2024, a report on Friday said. Showed in, as the card industry's growth remained slow. The immense popularity of UPI is seen from the transaction volume ratio, which is 38.4 times the credit card transaction volume, according to an Axis Securities report. UPI remains a preferred medium for low-value payments as 96 per cent of transaction volumes are below Rs 2,000, although its contribution to total UPI spend was 33 per cent (as of August).

However, given the lower ticket size of UPI transactions, UPI-to-credit card spend stood at 0.3x in August. The total number of cards in the industry stood at 924,000 in August, compared to 755,000 in July. However, this momentum has declined sharply (34 percent decline on a year-on-year basis). “We believe this reflects issuers’ vigilance and selective clients amid asset quality concerns in the sector. In the first five months of FY2025, the industry has seen 6 million inflows compared to 6 million in the same period last fiscal. Added 3.7 million cards,” the report noted.