UPI dominated digital transactions in 2022, payments worth Rs 126 lakh crore recorded, says report

Unified Payments Interface (UPI), India's flagship payment platform, continued to be the most dominant channel for digital payments in 2022, according to a report. The digital payment platform registered a 70 per cent increase in the number of transactions to 74 billion and a 54 per cent increase in value.

According to Worldline’s latest report, India Digital Payments Annual Report' for 2022, payment modes like UPI, debit and credit cards, and prepaid payment instruments, like mobile and prepaid cards, processed about 87.92 billion transactions worth Rs 149.5 lakh crore. Worldline is a global leader in payment services.

The report highlighted that UPI clocked over 74.05 billion transactions in volume and Rs 126 lakh crore in terms of value. Its transactions volume and value almost doubled since last year as it recorded 91 per cent increase in volume and over 76 per cent increase in value in the year 2022 as compared to 2021.

UPI transactions in 2022

The report highlighted that at the end of 2022, 54 per cent of UPI transactions volume were P2M (merchant transactions) whereas in terms of value it was 23 per cent of the total figure.

The average ticket size for P2M transactions in December 2022 was Rs 687, while for P2P transaction, it was Rs 2753.

However, in terms of value, UPI P2M accounted for 18% share whereas UPI P2P (person to person) accounted for 66 per cent of digital transactions by value (UPI was 84 per cent in total).

It should be noted that P2P transactions are not necessarily payments and can also be potentially money transfers among people, the report noted.

The report stated that the trends show that frequently visited physical merchant categories like grocery stores, restaurants, clothing and apparel, pharmacy and medical, hotels, jewelry retail, specialty retail, household appliances and departmental stores together accounted for over 43 per cent in terms of volume, while 40 per cent in terms of value.

In the online space, e-commerce (shopping for goods and services), gaming, utility and financial services contributed to over 85 per cent transaction in terms of volume and 25 per cent in terms of value. On the other hand, education, travel and hospitality sector contributed the remaining 15 per cent and 75 per cent in terms of volume and value, respectively.

Top 5 UPI apps in terms of volume & value	PhonePe	Google Pay	Paytm Payments Bank App	Amazon Pay	Axis Bank
Top 5 UPI Remitter Banks	State Bank of India	HDFC Bank	Bank of Baroda	Union Bank of India	ICICI Bank
Top 5 UPI beneficiary banks	Paytm Payments Bank	YES Bank	State Bank of India	Axis Bank	ICICI Bank

Ramesh Narasimhan, CEO, Worldline India, said: "I am amazed every day to see the incredible progress we have made in the digital payments ecosystem over the past few years. The adoption of multiple payment solutions is a boon in our journey to realise the dream of a less-cash India."

Credit and debit card transactions

For debit and credit cards, the volume and value of credit cards stood at 2.76 billion and Rs 13.12 lakh crore in 2022, respectively.

The number of credit card transactions at POS accounted for 1.47 billion while ecommerce was 1.29 billion. In terms of value, consumers transacted Rs 5.1 lakh crore at POS and Rs 8.1 lakh crore on e-commerce transactions via credit cards in the year 2022.

For debit card transactions, the volume and value stood at 3.64 billion and Rs 7.4 trillion, respectively. Of the total debit card volume, transactions at POS accounted for 2.38 billion, while transactions at e-commerce stood at 1.26 billion.

In terms of value, funds worth Rs 4.85 lakh crore was paid at POS terminals while Rs 2.56 lakh crore was processed at e-commerce via debit cards.

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