UPI Transactions Soar By 56% While Ticket Size Average Drops By 8%
UPI Transactions
UPI Transactions: Over the same time period, the value of transactions increased significantly by 44%, from Rs 69.36 trillion to Rs 99.68 trillion.
According to a research released on Wednesday by the global payment services firm Worldline, there has been a spectacular spike in the number of Unified Payments Interface (UPI) transactions during the second half of last year (H2 2023), with a startling year-over-year growth rate of 56%. The number of transactions increased dramatically from 42.09 billion in the second half of 2022 to 65.77 billion, indicating a notable rise in UPI transactions.
Over the same period, the value of transactions increased significantly by 44%, from Rs 69.36 trillion to Rs 99.68 trillion.
In the UPI app market, PhonePe, Google Pay, and Paytm have emerged as the top players in terms of both volume and value. These three applications accounted for 95.4% of all UPI transactions by volume in December 2023, a little increase from the 94.8 percent reported in the same month the previous year.
An important point to note is that the average ticket size (ATS) for UPI transactions dropped from Rs 1,648 to Rs 1,515, an 8 percent decline. The ATS saw a 4% year-over-year increase in peer-to-peer (P2P) transactions, going from Rs 2,649 to Rs 2,745. On the other hand, the research states that for Peer to Merchant (P2M) transactions, the ATS decreased from Rs 720 to Rs 656 in the same time frame.
“UPI continues to lead without a doubt, supported by a significant increase in mobile transactions. “This trend highlights users’ increasing comfort and confidence with smartphone-based payment methods,” stated Worldline’s Chief Executive Officer for India, Ramesh Narasimhan.
Narasimhan continued, “This emphasizes the need for fintechs to adapt to a varied array of payment channels.”
With the increasing popularity of mobile payments as the primary mode of payment, Point of Sale (PoS) terminal adoption has reached previously unheard-of levels. Furthermore, the number of PoS terminals increased by 26% to 8.56 million, with public sector banks accounting for 18% of the market share and private sector banks controlling a commanding 73% of the market.
The total number of cards in circulation has increased somewhat during the last 12 months. According to the research, there were 1.384 billion cards in circulation as of December 2023, an increase of 6% from the previous year. The study also showed that, with a startling 21% rise to 97.9 million credit cards, credit cards saw the largest year-over-year gain.
