Business
India’s UPI processed over 74 billion transactions worth INR 126 trillion in 2022
India’s Unified Payments Interface (UPI) has become a dominant force in the realm of digital payments, processing a staggering 74.05 billion transactions valued at INR 126 trillion in 2022.
This remarkable achievement marks a significant increase of 91% in volume and over 76% in value compared to the previous year, leaving financial analysts perplexed, as highlighted in a recent report by Worldline, a global leader in payment services.
What’s particularly noteworthy is that UPI’s Person-to-Merchant (P2M) and Person-to-Person (P2P) transactions together hold a substantial market share of 84%, with P2M accounting for 18% of the value share and P2P dominating with a commanding 66% share.
In terms of transaction volume, P2M and P2P transactions account for 40% and 44% respectively, showcasing the widespread adoption and impact of UPI in India’s journey towards a less-cash economy.
NPCI Press Release: UPI is free, fast, secure and seamless
— NPCI (@NPCI_NPCI) March 29, 2023
Every month, over 8 billion transactions are processed free for customers and merchants using bank-accounts@EconomicTimes @FinancialXpress @businessline @bsindia @livemint @moneycontrolcom @timesofindia @dilipasbe pic.twitter.com/VpsdUt5u7U
The report also revealed interesting insights about the average ticket size (ATS) for UPI transactions. By December 2022, the ATS for UPI P2P transactions was INR 2,753, while for UPI P2M transactions it was INR 687.
This indicates that UPI is being used for a wide range of transaction sizes, further highlighting its versatility and convenience for users across different transaction types.
The report also revealed that credit and debit card payments accounted for 7% of volume and a substantial 14% of value. In 2022, credit card transactions reached 2.76 billion with a total value of INR 13.12 trillion, while debit card transactions reached 3.64 billion with a total value of INR 7.4 trillion, intriguing financial analysts.
The report also revealed the surging popularity of prepaid payment instruments, with a total of 16.23 billion such instruments in circulation by December 2022. Out of these, 13.34 billion were wallets and 288.8 million were cards.
With UPI, make fast, safe, and simple digital payments in moments.#UPI #DigitalPayments #dilipasbe@GoI_MeitY @_DigitalIndia pic.twitter.com/cuGD8bHbga
— NPCI (@NPCI_NPCI) April 1, 2023
The significant growth in digital transactions is further evident in the proliferation of point-of-sale (POS) terminals deployed by merchant acquiring banks, which surpassed the 7.55 million mark by the end of 2022, marking a significant 37 per cent year-on-year growth.
Expressing unwavering optimism about the increasing adoption of digital payment solutions in India, Ramesh Narasimhan, CEO of Worldline India, stated, “The adoption of multiple payment solutions is a profound boon in our journey to realize the dream of a less-cash India.”
In conclusion, the report’s findings underscore the pivotal role played by UPI in driving the digital payments revolution in India, with its remarkable growth in transaction volume and value. The significant growth of UPI and digital payments in India has left financial analysts puzzled, showcasing the impact of multiple payment solutions on the country’s journey towards a cashless economy.