Online transactions have recorded a massive spike in India now, with everyone going digital, right from our local grocery stores to malls and restaurants.
According to a new report, in 2022, payment methods such as UPI, debit and credit cards, and prepaid payment instruments such as mobile and prepaid cards processed 87.92 billion transactions totaling Rs. 149.5 trillion in India.
87.92 Billion Digital Transactions Processed in 2022 in India
According to Worldline’s India Digital Payments Annual Report, Person-to-Merchant (P2M) and Person-to-Person (P2P) are the most popular UPI payment methods among consumers, with market shares of 40 percent and 44 percent in terms of transaction volume (UPI was 84 percent overall).
Unified Payments Interface (UPI) P2P accounted for 66% of digital transactions by value, compared to 18% of digital transactions by value for UPI P2M. P2P transactions are not always payments; they may also involve the transfer of money between individuals.
Payments made with credit and debit cards came in second, accounting for 7% of volume and 14% of value, according to the research. Since credit cards have traditionally been preferred by consumers for large-priced transactions, it is clear that their adoption is expanding at a robust rate, which emphasises the average ticket size of all payment options.
The popularity of digital payments continued to grow in 2022, with UPI setting the pace, according to the research. In 2022, popular payment methods including UPI, cards, and prepaid payment instruments (PPIs) had already processed more than Rs 149.5 trillion in digital transactions.
Worldline stated in its report that it will keep working with its merchants, partner banks, fintechs, and e-commerce operators in 2023 and beyond, as well as invest in the technology and infrastructure required to create a more open and inclusive financial ecosystem.
Government’s pre-Budget Economic Survey:
According to the government’s pre-Budget Economic Survey, UPI accounted for 52% of all 8,840-crore financial digital transactions in FY22, with a total value of Rs 126 lakh crore. According to the Economic Survey, UPI only accounted for about 17% of the nation’s 3,100 crore digital transactions in FY19 (2018-19).
UPI transactions grew 121 percent in value and 115 percent in volume on average between FY19 and FY22 (the calendar year), according to the survey. UPI reached its highest-ever mark in December 2022, when there were 782 crore transactions totalling Rs 12.8 lakh crore, according to the Economic Survey.
