UPI Transactions Volume Surge 56%, Average Ticket Size Drops 8%: Report
The number of Unified Payments Interface (UPI) transactions witnessed a staggering growth at 56% y-o-y (year-on-year) in the second half of last year (H2FY22-23), with the volume being at 65.77bn (billion) from 42.09bn in H2FY21-22, a new report showed on Wednesday.
The value of transactions in the same period surged by 44% from Rs69.36trn (trillion) to Rs99.68trn, according to the report by global payment services leader Worldline.
In terms of volume and value, PhonePe, Google Pay and Paytm were the dominant UPI app players. In December 2023, the three apps accounted for 95.4% of all the transactions in terms of volume which was 94.8 per cent in December 2022.
The noteworthy figure remains the average ticket size (ATS) of UPI transactions, which declined by 8% from Rs1,648 to Rs1,515.
For peer-to-peer (P2P) transactions, the ATS saw a 4% y-o-y growth from Rs2,649 to Rs2,745. During the same period, the ATS of Peer to Merchant (P2M) transactions decreased from Rs720 to Rs656, the report mentioned.
“UPI maintains its position as the uncontested frontrunner, buoyed by substantial expansion in mobile transactions. This trend underscores users' growing confidence and familiarity with smartphone-based payment methods,” said Ramesh Narasimhan, Chief Executive Officer-India, Worldline.
The proliferation of Point of Sale (PoS) terminals has reached unprecedented levels, concurrent with the ascendance of mobile payments as a dominant transaction avenue.
“This underscores the necessity for fintechs to adjust to a diverse array of payment channels,” said Mr Narasimhan.
PoS terminals expanded by 26% to reach 8.56mn (million). Private sector banks dominated the space with 73% market share while public sector banks accounted for 18%.
The total number of cards in circulation has shown a modest growth in the past one year.
In December 2023, the total number of cards reached 1.384bn (billion), a 6% y-o-y increase, the report mentioned. Credit cards witnessed the highest upsurge y-o-y basis with a growth of 21% at 97.9mn, said the report.
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