MUMBAI — The unified payments interface (UPI)-based transactions volume surged 52 per cent to 78.97 billion in the first half this year (H1 2024), from 51.9 billion in the same period last year, a report showed on Thursday.
Similarly, the value of transactions grew by 40 per cent, increasing from INR 83.16 lakh crore to INR 116.63 lakh crore in the first six months this year.
Month-wise, the number of UPI transactions rose significantly from 8.03 billion in January last year to 13.9 billion in June.
This growth in volume was matched by an increase in transaction value, which climbed from INR 12.98 lakh crore in January last year to INR 20.07 lakh crore in June, according to the report by Worldline, a global leader in payment services.
“This significant rise in UPI transactions, particularly in the person-to-merchant (P2M) segment, further cements its position as the preferred method for micro-transactions, demonstrating long-term sustainability and even movement to larger transactions in the coming years,” said Ramesh Narasimhan, CEO, Worldline India.
The average ticket size (ATS) of all UPI transactions dropped to INR 1,478 in the first six months this year, from INR 1,603 last year, reflecting an 8 per cent decrease.
The payment infrastructure also continues to grow as well. The number of POS (point of sale) terminals deployed on the field crossed the 8.96 million-mark.
According to the report, the most visited in-store merchant categories included grocery stores, restaurants, service stations, clothing stores, government services, pharmacies, and hospitals.
Together, they represented approximately 68 per cent of transaction volume and nearly 53 per cent of total transaction value.
In the online sector, e-commerce, gaming, utilities, government services, and financial services accounted for around 81 per cent of transaction volume and about 74 per cent of total transaction value.
Notably, UPI QRs saw a remarkable growth of 39 per cent, surging to 340 million from 244.23 million during the same period. This expansion in UPI QRs is also reflected in the increasing volume of UPI transactions.
Three UPI apps dominate the landscape in terms of volume and value: PhonePe, Google Pay and Paytm. As of June, these three apps accounted for 94.83 per cent of all UPI transaction volume.
In contrast to card issuance, the volume of card transactions in H1 2024 totalled 3.735 billion, reflecting a 3 per cent growth from H1 2023. The total value of card transactions reached INR 13.49 lakh crore, reflecting a 21 per cent YoY increase.