Money & Banking

UPI P2M transactions has eaten into the share of other payment modes: Worldline India Annual Digital Payments Report 

BL Mumbai Bureau | | Updated on: Mar 24, 2022
A store advertises the use of the Bharat Interface for Money (BHIM) payment app in Mumbai, India, on Saturday, July 17, 2021. India had a record $6.3 billion of funding and deals for technology startups in the second quarter, while funding to China-based companies dropped 18% from a peak of $27.7 billion in the fourth quarter of 2020, according to data from research firm CB Insights. Photographer: Dhiraj Singh/Bloomberg

A store advertises the use of the Bharat Interface for Money (BHIM) payment app in Mumbai, India, on Saturday, July 17, 2021. India had a record $6.3 billion of funding and deals for technology startups in the second quarter, while funding to China-based companies dropped 18% from a peak of $27.7 billion in the fourth quarter of 2020, according to data from research firm CB Insights. Photographer: Dhiraj Singh/Bloomberg | Photo Credit: DHIRAJ SINGH

UPI a 105 per cent increase in volume and 111 per cent increase in value as compared to 2020

The combined volume and value of digital payments through cards, PPIs and UPI P2M transactions was 2,843 crore and ₹32,00,000 crore in 2021, according to the Worldline India Annual Digital Payments Report 2021.

“UPI emerged as the most preferred payment mode among consumers with a P2M market share volume of 56 per cent while its share of the value of transactions was 41 per cent,” the report said.

UPI clocked over 457 crore transactions in volume and breached ₹8,20,000 crore in terms of value. It recorded a 105 per cent increase in volume and 111 per cent increase in value as compared to 2020.

“It is pertinent to note that UPI P2M transactions has significantly eaten into the share of card and other payment modes,” the report further said.

Cards dominated the merchant acceptance payments landscape and contribute for a good chunk of the pie with 26 per cent transactions in volume and 53 per cent in value, it further said.

The total number of cards in circulation breached the 100-crore-mark in 2021 with 100.67 crore cards recorded as of December 2021.

However, going by average ticket size of payment transactions in December 2021, credit cards were used for higher ticket size payments. The average payment size for credit cards was ₹4,122 in December while for debit cards, it was ₹1,804.

For UPI P2P, average ticket size of payment transactions in December 2021 was ₹2,650 and for UPI P2M was ₹786.

Published on March 24, 2022

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