The UPI transactions in India recorded a remarkable 56% year-on-year surge during the second half of 2023, according to a report by the payment service provider "Worldline".
In contrast, card transactions experienced a more modest growth rate of 6%.
In addition, the value of transactions witnessed an impressive 44% increase, soaring from INR 69.36 trillion to a remarkable INR 99.68 trillion during the same period.
Ramesh Narasimhan, Chief Executive Officer of Worldline India, highlighted that the year 2023 marked significant milestones in the payments ecosystem as UPI continues to lead the way, driven by a substantial increase in mobile transactions.
“This trend underscores users’ growing confidence and familiarity with smartphone-based payment methods. The proliferation of Point of Sale terminals has reached unprecedented levels, concurrent with the ascendance of mobile payments as a dominant transaction avenue. This underscores the necessity for FinTechs to adjust to a diverse array of payment channels," Narasimhan said.
Moreover, there has been an 8% decline in the average ticket size (ATS) for UPI transactions, from INR 1,648 to INR 1,515. This indicates a growing integration of UPI in smaller transactions, particularly person-to-merchant (P2M) transactions, and reflects the increasing preference for digital payment methods.
The report also emphasizes the nationwide implementation of enhanced payment acceptance infrastructure, with a significant 26% increase in the adoption of Point of Sale (PoS) terminals, reaching a total of 8.56 million.
Bharat QR (BQR) and UPI also experienced substantial expansion, highlighting the widespread availability of digital payment alternatives.