Curated By: Business Desk
Last Updated: September 27, 2023, 13:46 IST
Worldline, a global leader in payment services has released its Digital Payments Report for H1 2023 (January to June). The UPI transactions in India reached 9.3 billion in June which was 151 million in January 2018. In January 2023, the number of UPI transactions was 4.6 billion. The Person 2 Merchant (P2M) transactions have increased significantly in India.
In January 2022, P2M transactions accounted for only 40.3 per cent of all the UPI transactions in India. Now, according to the report, the P2M transactions in India amounted to 57.5 per cent of all the UPI transactions in June 2023. Such transactions are expected to increase with time.
The P2M UPI transactions consist of payments which are done by the user to a shop, stall or business owner. Today, almost every other shopkeeper, fast food stall owner, or vegetable stall owner holds the QR code for the UPI payments. This has made things easier for the business owners.
The Worldline report also underlines the increase of microtransactions in India. The Average Ticket Size (ATS) of the UPI P2M transactions was Rs 885 in January 2022 which has now been reduced to Rs 653 in June 2023. Hence, it indicates that YPI is now being increasingly used for the micro-payments.
The CEO of Worldline, Ramesh Narasimhan said that he finds himself more optimistic about the payment trends which are unfolding in India after looking at the H1 report 2023. He applauded India for its impressive performance in P2M transactions and the surge in credit card usage.
“All this indicates that broad swathes of the country, rural and urban, are embracing digital payments,” said Ramesh Narasimhan as quoted in the report.
According to the Worldline report of H1 2023, people frequently visited in-store merchant categories such as grocery stores, restaurants, service stations, hospitals, government services and clothing stores. It all accounted for nearly 60 per cent of the total transaction value. In the online space, e-commerce, gaming utilities, government and financial services contributed to more than 75 per cent of the total transaction value.
The onset of UPI transactions has changed the way of toll payments in India. The World Bank report also applauded and said that India has achieved such a huge milestone in merely 6 years which otherwise would have taken almost 5 decades. In August, India crossed the 10 billion mark in UPI transactions, as per the National Payments Corporation Of India report