In the latter half of the previous year (H2 2023), the Unified Payments Interface (UPI) transactions experienced an impressive surge, marking a 56 percent increase year-on-year, as indicated by a recent report unveiled on Wednesday. The transaction volume soared to 65.77 billion from 42.09 billion in H2 2022, paralleled by a 44 percent rise in transaction value from Rs 69.36 trillion to Rs 99.68 trillion, as per findings from the renowned global payment services leader, Worldline.
Among the UPI app players, PhonePe, Google Pay, and Paytm emerged as the prominent contenders in terms of both volume and value. By December 2023, these three apps collectively represented a substantial share of 95.4 percent in transaction volume, a slight increase from 94.8 percent in December 2022.
Of particular interest is the average ticket size (ATS) of UPI transactions, which witnessed a downward trend, declining by 8 percent from Rs 1,648 to Rs 1,515. However, for peer-to-peer (P2P) transactions, the ATS demonstrated a 4 percent year-on-year growth from Rs 2,649 to Rs 2,745. Conversely, the ATS for Peer to Merchant (P2M) transactions experienced a decrease from Rs 720 to Rs 656 during the same period, as highlighted in the report.
Ramesh Narasimhan, the Chief Executive Officer-India at Worldline, remarked, “UPI continues to lead the way, driven by a significant surge in mobile transactions. This trend reflects the increasing trust and familiarity of users with smartphone-based payment mechanisms.”
The proliferation of Point of Sale (PoS) terminals has reached unprecedented levels, coinciding with the rise of mobile payments as a dominant transaction medium. Narasimhan emphasized the importance for fintech companies to adapt to a diverse range of payment channels.
PoS terminals witnessed a remarkable 26 percent expansion, reaching a total of 8.56 million. Private sector banks maintained dominance in the sector with a 73 percent market share, while public sector banks held an 18 percent share.
Despite a modest growth, the total number of cards in circulation showed positive momentum over the past year. By December 2023, the total number of cards reached 1.384 billion, indicating a 6 percent year-on-year increase. Notably, credit cards observed the highest surge, growing by 21 percent to reach 97.9 million, according to the report.
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