There has been a remarkable surge in the number of Unified Payments Interface (UPI) transactions during the second half of last year (H2 2023), with a staggering year-on-year growth rate of 56 per cent, according to a report by global payment services firm Worldline released on Wednesday.
The volume of transactions soared from 42.09 billion in H2 2022 to 65.77 billion, highlighting a significant increase in UPI transactions.
The value of transactions during the same period experienced a substantial surge of 44 per cent, rising from Rs 69.36 trillion to Rs 99.68 trillion.
When it comes to both volume and value, PhonePe, Google Pay, and Paytm emerged as the leading players in the UPI app landscape. In December 2023, these three apps collectively represented 95.4 per cent of all UPI transactions by volume, slightly up from 94.8 per cent recorded in December 2022.
A significant aspect to highlight is the average ticket size (ATS) of UPI transactions, which decreased by 8 per cent from Rs 1,648 to Rs 1,515. Regarding peer-to-peer (P2P) transactions, the ATS experienced a 4 per cent year-on-year growth, rising from Rs 2,649 to Rs 2,745. Conversely, for Peer to Merchant (P2M) transactions, the ATS declined from Rs 720 to Rs 656 during the same period, as noted in the report.
“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.
“This underscores the necessity for fintechs to adjust to a diverse array of payment channels,” added Narasimhan.
The widespread adoption of Point of Sale (PoS) terminals has reached unparalleled heights, coinciding with the rise of mobile payments as a predominant transaction method. In addition, the number of PoS terminals surged by 26 per cent to reach 8.56 million, with private sector banks holding a dominant 73 per cent market share, while public sector banks accounted for 18 per cent.