Trend and Growth Analysis of AEPS in India: A Secondary Database study

Abstract

Background: The rapid expansion of digital financial services has contributed to the transformation of India's payment ecosystem. The Aadhaar Enabled Payment System (AEPS) is an Aadhaar-based payment mechanism that facilitates various banking transactions through assisted banking channels. Understanding the changing pattern of AEPS transactions is important for assessing its growth within India's digital financial ecosystem.

Objective: The study aims to analyze the trends in AEPS transactions in India during the study period and to examine the growth of AEPS transaction volume and transaction value using appropriate growth measures.

Methodology: The study is based on secondary data obtained from the AEPS Product Statistics of the National Payments Corporation of India (NPCI). The analysis covers the period from 2018–19 to 2025–26. Transaction volume and transaction value are examined using trend analysis, Annual Growth Rate (AGR) and Compound Annual Growth Rate (CAGR).

Findings: The analysis reveals a continuous increase in AEPS transaction volume during the study period, rising from 1,694.10 million transactions in 2018–19 to 6,281.21 million transactions in 2025–26. Transaction value also increased substantially from ₹67,015.78 crore to ₹3,28,194.19 crore, although fluctuations were observed during the later years. The transaction volume recorded a CAGR of 20.59%, while transaction value recorded a higher CAGR of 25.48%. The results indicate substantial overall growth in AEPS transaction activity during the study period.

Conclusion: The study concludes that AEPS experienced significant growth in both transaction volume and transaction value during the study period. The sustained increase in transaction activity highlights the expanding use of AEPS within India's digital financial ecosystem and provides evidence of its growing relevance as a channel for digitally enabled financial transactions.