How Festive Seasons Boost UPI Transactions for Online Businesses
5 min read
Is it possible for one groundbreaking innovation to transform a nation’s payment system completely? Yes, it is! You can take UPI as an example. It transformed how digital payments function in India by enabling ultra-fast and secure transactions that eliminate friction. The influence of this system reaches well past standard payment activities.
One major factor since its inception that added to its growth was the festive periods. How? UPI experiences exponential growth during major festival periods such as Diwali, New Year, and others, unlocking significant revenue opportunities for businesses. The 2023 festive season was a prime example of this explosive growth. In October 2023, UPI added 1 billion transactions in just two months, reaching the 11 billion mark. By October 2024, UPI processed 16.58 billion transactions with a total value of ₹23.49 lakh crore, reinforcing UPI’s leadership position, as it controls over half of India’s total digital transaction value for the year. Since UPI makes up about 95% of digital transactions, having this as a payment method automatically makes it a good payment experience for customers.
This surge stems from high smartphone adoption rates combined with easily accessible internet services and substantial government support. Even online businesses of all sizes can experience significant growth during peak shopping periods by implementing UPI payment gateways like PhonePe Payment Gateway. So, let’s dig out what strategies online businesses should use to leverage this trend for improved sales and operational efficiency.
How Do Festivals, Shopping, and UPI Create a Perfect Synergy?
In today’s digital world, UPI is changing the game for online businesses. It lets customers make instant, seamless payments from their mobile devices, so no cash or cards are needed. With its fast processing, strong security, and easy-to-use features, UPI is a big win for businesses in this cashless economy. Sounds pretty great, right?
What’s even better is that UPI lets users link multiple bank accounts to one app, making transactions both secure and super convenient. So, how does this tech impact your business? Well, UPI is built to handle high volumes of transactions, which is especially helpful during the festive season. Whether it’s a surge in orders or your sales hitting peak levels, UPI makes sure your payment process stays smooth and reliable, no matter how busy things get.
What Are The Factors Driving UPI Transaction Growth During Festivities?
The surge in UPI transactions during festivals can be attributed to the three R’s: Reach, Reliability, and Revenue Growth.
Reach
UPI attained 350 million active users by 2024 as its integration with e-commerce apps and retail and service providers made it essential for payments during the festive season. The availability of UPI in mobile apps has increased its use among online buyers throughout both urban regions and rural areas. QR-code-based payment methods facilitate populations to participate in Digital economic activities without traditional banking access.
Reliability
UPI earns customer trust with its secure real-time transaction capabilities, which make it the preferred payment system during festive shopping seasons. UPI payment solutions that work with e-commerce platforms as well as quick commerce setups to provide uninterrupted checkout transactions even during peak website traffic. NPCI’s continuous infrastructure improvement measures guarantee UPI’s status as the most dependable payment system. This reliable payment system leads to reduced transaction errors while simultaneously boosting customer satisfaction.
Revenue Growth
The festive seasons bring a flurry of offers, discounts, and cashback opportunities that directly connect with UPI payment options, encouraging customers to spend more. For example, online retailers come up with multiple lucrative savings opportunities like “flat 50% off,” “Buy One Get One Free,” “30% cash back,” etc., during Diwali sales. Special deals and UPI cashback offers often lead to a spike in transactions. A 2023 RedSeer Consulting study revealed that UPI powered over 75% of online festive transactions, driving higher revenue for businesses, especially in the online retail sector. Businesses love UPI because its transaction fees are lower than those of card-based systems, making it a cost-effective payment solution for high-volume sales periods like the holidays.
The increase in customers during festive shopping requires you to be prepared to handle the influx. UPI provides shoppers with quick, secure payment transactions without any complications. When businesses adopt UPI, they don’t only increase sales but also establish enduring customer loyalty.
A trustworthy UPI gateway like PhonePe PG enhances payment interactions for both merchants and consumers. It offers seamless integration for quick checkouts, strong security with encryption and compliance, higher conversion rates by reducing cart abandonment, scalability to handle transaction surges, and valuable data insights for improving marketing strategies during festive periods.
One common pain point businesses face during peak shopping seasons is managing high transaction volumes. PhonePe PG addresses this by providing a robust solution that ensures smooth payment processing even during the busiest times, reducing the risk of failures. Its scalability and reliable infrastructure make it the best choice for businesses aiming to maintain efficiency and customer satisfaction, no matter how high the traffic.
So, strengthen your market position and increase profit margins through reliable payment processing during peak periods. As India moves toward cashless transactions, unlock your growth potential with PhonePe PG today!
