In an era where digital transactions are becoming the norm, India’s Unified Payments Interface has emerged as a giant, overshadowing other payment methods with a staggering transaction value of Rs 99.68 trillion in the third quarter, as per the latest report by Worldline.
Also Read: Revolutionizing Digital Payments: RBI’s New Rule on UPI Payments from PPI Wallets via Third-Party Apps and the Impact on Payment Service Providers
UPI: The Colossus of Digital Payments in India
The ‘India Digital Payments Report’ for H2 2023 by Worldline paints a vivid picture of UPI’s dominance. The transaction volume has seen a monumental increase from 8.03 billion transactions in January 2023 to 12.02 billion by December 2023. This surge is mirrored in the transaction value, which soared from Rs 12.98 trillion to an impressive Rs 18.22 trillion in the same period.
A Deep Dive into the Numbers
The volume of UPI transactions in H2 2023 witnessed a 56% jump from the previous year, reaching 65.77 billion. The value of these transactions also grew by 44%, marking a rise from Rs 69.36 trillion to Rs 99.68 trillion. Person-to-person (P2P) transactions grew by 34%, while person-to-merchant (P2M) transactions saw a remarkable 77% increase in volume.
The Shift in Consumer Behavior
Interestingly, the average ticket size (ATS) of UPI transactions in H2 2023 was Rs 1,515, an 8% decrease from the previous year. This indicates a shift towards more frequent but smaller transactions, particularly in the P2M category, suggesting a growing consumer preference for UPI in everyday purchases.
The Future of UPI
With three dominant apps – PhonePe, Google Pay, and Paytm – accounting for over 95% of the transaction volume, ease of use and attractive features continue to attract users. The future looks bright, with its increasing adoption for micro-transactions signaling a shift in the payment landscape of India.
It’s towering transaction value in Q3 is a testament to its ubiquity and user trust. As digital payments evolve, UPI stands tall, not just as a convenient option, but as the backbone of India’s digital economy.
This article synthesizes the key points from the Worldline report, highlighting it’s significant growth and its implications for the future of digital payments in India.
Download Original Report: WorldlineIndia Digital Payments Report H2-3rdApril2024
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