Report: UPI transactions volume sees 56% surge, average ticket size decreases by 8%

New Delhi, April 3 (IANS) – A recent report by global payment services leader Worldline revealed a significant growth in Unified Payments Interface (UPI) transactions during the second half of 2023. The volume of transactions saw a 56 per cent increase from the previous year, reaching 65.77 billion, while the value surged by 44 per cent to Rs 99.68 trillion.

PhonePe, Google Pay, and Paytm emerged as the dominant players in the UPI app segment, accounting for 95.4 per cent of all transactions by volume in December 2023. The average ticket size (ATS) of UPI transactions decreased by 8 per cent to Rs 1,515, with peer-to-peer transactions witnessing a 4 per cent year-on-year growth.

Ramesh Narasimhan, CEO-India of Worldline, highlighted the growing confidence and familiarity of users with smartphone-based payment methods, as UPI continues to be the preferred choice for digital transactions. The proliferation of Point of Sale (PoS) terminals has further reinforced the dominance of mobile payments in the market.

The report also mentioned a 26 per cent increase in PoS terminals, reaching 8.56 million, with private sector banks holding a 73 per cent market share. In addition, the total number of cards in circulation showed a modest growth, reaching 1.384 billion in December 2023, with credit cards witnessing a 21 per cent year-on-year growth.

As mobile transactions continue to grow, fintech companies are urged to adapt to a diverse range of payment channels to meet the evolving needs of consumers. With UPI transactions on the rise and PoS terminals expanding rapidly, the digital payment landscape in India is undergoing significant changes driven by technological advancements and changing consumer preferences.