The number of UPI transactions increased from 4.6 billion in January 2022 to 9.3 billion in June 2023, which was primarily driven by the growth in person-to-person (P2M) transactions, according to a report by Worldline. In January 2018, the number of UPI transactions stood at 151 million.
Correspondingly, the transaction value increased from ₹8.3 trillion in January 2022 to ₹14.7 trillion in June 2023.
UPI is a huge success and expects to continue to dominate payments in India, according to the report by the payment services provider. In January 2022, P2M transactions accounted for 40.3 per cent of all UPI transactions, compared to 57.5 per cent in June 2023, and this percentage is expected to keep growing, said the report.
Another indicator that predicts the future of UPI growth, particularly UPI P2M transactions, is the average ticket size (ATS). The ATS for UPI P2M transactions, which was ₹885 in January 2022, has been reduced to ₹653 in June 2023, indicating that UPI is now being increasingly used for microtransactions, indicating a further entrenchment of UPI.
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“The impressive performance of UPI, the surge in credit card usage, the jump in mobile payments volume, and the uptick in small ticket size of P2M transactions indicate that broad swathes of the country, rural and urban, are embracing digital payments,” said Ramesh Narasimhan, Chief Executive Officer, Worldline India.
In H1 2023, frequently visited in-store merchant categories such as grocery stores, restaurants, service stations, clothing stores, government services, pharmacies, and hospitals accounted for around 65 per cent in terms of volume and nearly 50 per cent of the total transaction value.
While in the online space, e-commerce, gaming, utilities, government, and financial services amounted to more than 80 per cent of the total transaction volume and contributed to more than 75 per cent of the total transaction value.
The top 10 States and UT with the highest number of transactions at physical touch points in 2022 for Worldline India were Maharashtra, Kerala, Tamil Nadu, Karnataka, Delhi, Telangana, Uttar Pradesh, Gujarat, Andhra Pradesh, and West Bengal.
Worldline Payment Services today unveiled its India Digital Payments Report for H1 2023 (January to June 2023), which captures a series of noteworthy trends and shifts within the digital payments landscape.