India's UPI transactions surged by 52% to 78.97 billion in H1 2024, marking significant growth from 51.9 billion in the same period of 2023. Transaction value increased to Rs 116.63 trillion. PhonePe led in volume and value among UPI apps. Despite growth, average transaction size fell 8%. P2P transactions remained stable, while P2M transactions declined. UPI reaffirms as the go-to for micro-transactions with potential for larger transactions. In-store transactions favored groceries, restaurants, and services, while e-commerce dominated online transactions. POS terminals increased by 17%.
India's Unified Payment Interface (UPI) has seen a remarkable surge in transaction volumes, recording a 52% year-on-year increase to 78.97 billion in the first half of 2024, according to the latest India Digital Payments Report by Worldline, a leading payment technology service provider. This growth underscores UPI's dominant position in the payment market, with its reach expanding rapidly.
From January 2023 to June 2024, the number of UPI transactions soared from 8.03 billion to 13.9 billion. This rise in volume was accompanied by a substantial increase in transaction value, climbing from Rs 12.98 trillion to an impressive Rs 20.07 trillion during the same period.
Comparing the first half of 2024 to the corresponding period in 2023, the report highlighted a significant 52% increase in UPI transaction volume, jumping from 51.9 billion to 78.97 billion. Concurrently, the value of transactions grew by 40%, escalating from Rs 83.16 trillion to Rs 116.63 trillion.
Among UPI apps, PhonePe emerged as the top contributor in both volume and value, followed by Google Pay and Paytm. Despite the overall growth, the report noted an 8% decline in the average ticket size (ATS) of UPI transactions. The ATS for all UPI transactions dropped from Rs 1,603 in H1 2023 to Rs 1,478 in H1 2024.
ATS encompasses both person-to-person (P2P) and person-to-merchant (P2M) transactions. While the ATS for P2P transactions remained relatively stable at Rs 2,836, ATS for P2M transactions decreased from Rs 667 to Rs 643, marking a 4% reduction.
Worldline India CEO Ramesh Narasimhan emphasized that the surge in UPI transactions, especially in the person-to-merchant segment, solidifies its status as the preferred method for micro-transactions. This trend not only indicates long-term sustainability but also hints at a shift towards larger transactions in the future.
In the realm of in-store transactions, categories like grocery stores, restaurants, service stations, clothing stores, government services, pharmacies, and hospitals were the most frequented during the first half of 2024. These categories collectively contributed to nearly 53% of the overall transaction value and 68% of the transaction volume.
For online transactions, e-commerce, gaming, utilities, government services, and financial services dominated, constituting around 81% of the overall transaction volume and 74% of the total transaction value.
Moreover, the research highlighted a 17% increase in the number of POS (point of sale) terminals between January 2023 and June 2024, rising from 7.65 million to 8.96 million, signaling a growing infrastructure to support the expanding digital payment ecosystem.
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