Guesstimate Demonstration: How many UPI transactions happened in India in 2020?

A complete walkthrough of a guesstimate with a detailed look at the following:
- Clarifying questions
- Structuring
- Sanity checks
- Discussion of trends and the industry
- Analysis of best practices
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[@siddharthranawat1814]

This kind of guestimate surely need a lot of intelligence and experience. You are the guestimate goddess 😄

[@piyush5881]

pls make more videos🙌🏻

[@10MinuteFinance]

Nice approach!

[@rajeshsandu4921]

very nice explanation mam beginners can learn in easy way tosolve it mam.

[@akshatshah8509]

It was really insightful.
Just a question isn't the formula for Avg No. of txn / year need to be multiplied by 4 as the current fml gives txn/quarter?

[@swethasrinivasan3248]

Hi Akshat! We've already added the transactions for each quarter to arrive at the subtotal and the total. Hence, it's enough to multiply it by 3*4.

[@sidraraihan7647]

Hi. This was quite helpful. I am unsure why we have done 4*3, as the total is per week, and there are 52 weeks roughly in a year. Moroever, don't you think a female:male segmentation should be considered somewhere, assuming that UPI/mobile phone users/bank a/c holders and eventually UPI users among females would be lower, especially in the rural areas

[@venkatesh5391]

I had a different approach altogether. My formula would look like # Transactions = (Total Amount paid through UPI per month) * 12/Average amount per transaction. For the total amount paid through UPI, I would bifurcate the population (household), urban/rural, and tech/internet penetration, post that, I would make a table for the monthly expenditures of the family and the modes of transactions (UPI/Internet Banking, Direct Banking, Cash, etc). For average amount per transaction, a weighted matrix of average cost per transaction across shopping, groceries, etc. Do let me know if there are any considerations missing in the approach.

[@sidraraihan7647]

Could you explain why you did the 50% digital literacy in the sanity check? Also, don't you think we should have considered per household (averaging 4 people in a house in urban) and perhaps 5 or 6 people in a household in rural India, simply because everybody is not doing a UPI transaction for staples in a household, it's usually just one person.