UPI Transactions Surge by 56% in India: Worldline Report

In the second half of 2023, UPI transactions in India witnessed a remarkable surge of 56% year-on-year, outpacing the modest growth of 6% in card transactions, according to a report by payment service provider Worldline. The report reveals that the volume of UPI transactions soared to 65.77 billion, marking a substantial increase from 42.09 billion in the same period. Moreover, transaction value saw a significant rise of 44%, reaching Rs 99.68 trillion from Rs 69.36 trillion.

Rapid Expansion in Mobile Transactions: CEO Insights

Ramesh Narasimhan, Chief Executive Officer of Worldline India, highlighted the notable milestones achieved in the payments ecosystem during 2023. He emphasized UPI’s continued dominance, driven by the substantial growth in mobile transactions. Narasimhan noted the increasing confidence and familiarity of users with smartphone-based payment methods, coupled with the unprecedented proliferation of Point of Sale terminals. He stressed the importance for FinTechs to adapt to diverse payment channels in response to evolving consumer preferences.

Shift in Transaction Patterns: Decline in Average Ticket Size

Despite the surge in transaction volume and value, the report indicates an 8% decline in the average ticket size (ATS) for UPI transactions, dropping from Rs 1648 to Rs 1515. This decline reflects the growing integration of UPI in smaller transactions, particularly person-to-merchant (P2M) transactions, showcasing evolving consumer preferences towards digital payment methods.

Infrastructure Enhancement: Rise in Payment Acceptance Terminals

The report also highlights a significant enhancement in payment acceptance infrastructure across India. Usage of Point of Sale (PoS) terminals increased by 26% to 8.56 million, indicating a growing adoption of digital payment options. Notably, Bharat QR (BQR) and UPI experienced substantial growth, underscoring the proliferation of digital payment alternatives.