A recent study conducted by fintech start-up PayNearby found that in FY24 Aadhaar-enabled Payment System (AePS) transaction value grew by 1,000% in Meghalaya, with a 712% increase in the number of transactions in the state, followed by Nagaland and Assam.
The study also revealed that retail stores in Jammu & Kashmir (J&K) witnessed over 134% growth in value and 89% growth in the volume of AePS transactions.
Likewise, MicroATM transactions at retail stores in the Union Territory saw a 31% increase in both value and volume. In additions, the findings indicate a strong shift towards digital payments with the transactions on UPI QR codes at retail outlets growing by 84%.
Meanwhile, Mizoram and Meghalaya witnessed 55% and 43% growth in transaction value respectively, while the transaction volume for the two states grew 33% and 43%, respectively.
Commenting on the findings, Anand Kumar, PayNearby’s Founder, MD and CEO, said, “Over the past few years, we have witnessed an extraordinary transformation in financial & digital services across Bharat, especially in Jammu & Kashmir and the Northeast states. This reflects the critical role of retail outlets in facilitating easy access to banking services, especially in areas where traditional bank branches may not be easily accessible.”
In addition, the study found that local retailers and kiranas in Telangana and Uttar Pradesh witnessed the highest growth in assisted ecommerce transactions, recording more than 1100% and 164% increase respectively. The average ticket size in the ecommerce and branded shop category was Rs. 1,500 and Rs. 3,000 respectively.
Yet another aspect of the digital financial services covered by the study was the disbursal of MSME loans through retail stores, which was led by Punjab with 29% growth. Insurance disbursals through retail stores also saw an uptick, with Kerala and Madhya Pradesh recording 24% and 14% increase, respectively.