Comments
Even as United Payments Interface (UPI) was the most preferred medium for digital payments with a volume and value market share of 84 per cent, 2022 also saw increased adoption of credit cards and a slowdown in debit card transactions.
Debit and credit cards which collectively accounted for 7 per cent of the transactions in terms of volume and 14 per cent in terms of value.
“The adoption of credit cards is growing at a healthy pace as it has long been a preference of customers when it comes to high ticket size transactions,” as per the India Digital Payments Annual Report for 2022 released by global payments player Worldline.
The volume and value of transactions via credit cards has grown steadily through the year and is likely to increase as they are now eligible for UPI transactions, the report said. On the other hand, debit card transactions have seen a steady decline, likely owing to the increased adoption of UPI.
Credit card transactions at POS were 147 crore worth ₹5.1 lakh crore, and on e-commerce platform were 129 crore worth ₹8.1 lakh crore in 2022.
A total of 8,792 crore digital payments were undertaken in 2022 worth ₹149.5 lakh crore. As of December 2022, total cards in circulation were 102 crore, PoS (point of sale) terminals deployed by merchant acquiring banks were 75.5 lakh, prepaid payment instruments were 1,623 crore and there were 24.3 crore QR codes.
Most preferred modes
Within UPI, Person-to-Merchant (P2M) and Person-to-Person (P2P) were the most preferred payment modes among consumers. P2M transactions accounted for 54 per cent of UPI transactions and 23 per cent in terms of volume. P2P transactions comprised 46 per cent of the volume of transactions and 77 per cent in terms of value.
On an overall basis, P2M transactions had a market share of 40 per cent in terms of volume and 18 per cent in terms of value. P2P transactions accounted for 44 per cent of the volume of digital transactions and 66 per cent in terms of value.
State Bank of India and ICICI Bank were among the top five, both in terms of being a UPI remitter and beneficiary bank. HDFC Bank, Bank of Baroda and Union Bank were the other top UPI remitter banks in 2022, whereas Paytm Payments Bank, YES Bank and Axis Bank were the other top UPI beneficiary banks.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.