UPI payment system ‘huge success’ in India: Worldline report – Dainik Savera Times

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New Delhi: A recent report by Worldline, a global leader in the payment services sector, has described the digital payment system Unified Payment Interface (UPI) in India as ‘a huge success’ and said that the number of transactions through UPI has increased from 100,000 in January 2018. Compared to 15.1 crore in India, it increased to 9.3 billion in June 2023. In its report on digital payments in India in the first half (January to June 2023), Birdline has said that person-2-merchant (P2M) transactions are increasing and all UPI transactions in June 2023 The contribution of P2M was 57.5 percent.

According to the report, the number of transactions through UPI was 4.6 billion in January last year, which increased to 9.3 billion in June 2023. According to the report, mobile phones are giving a boost to digital transactions. The number of mobile transactions in the first half of the year 2023 stood at 52.15 billion compared to 33.55 billion in the same period last year. The report described UPI as “a huge success” and predicted that it would dominate other systems in the payments sector in India. In January 2022, the share of P2M in all UPI payments was 40.3 percent, increasing to 57.5 percent in June 2023. According to World Line, this share is expected to increase further.

According to the report, now due to the decrease in the average size of payment through UPI, further spread of UPI and also P2M transactions can be predicted in the future. According to the report, the average size of UPI P2M transaction was Rs 885 in January 2022, which decreased to Rs 653 in June 2023. According to Worldline, this shows that UPI is now being used increasingly for micro (very small amount) transactions, which indicates further strength of UPI.

Ramesh Narasimhan, CEO, Worldline in India, says, “Each passing month is a testament to the rapid adoption of digital payments. Looking ahead to the first half of 2023, I find myself even more optimistic about the payments trends emerging in India; Impressive performance of UPI, increase in credit card usage, surge in mobile payment volumes and increase in smaller ticket sizes of P2M transactions. “All this indicates that a wide section of the country, rural and urban, is adopting digital payments.”

Worldline India Insights report shows that in the first half of 2023, about 65 percent of the total transactions made through UPI in the physical establishments category and about 50 percent of the total payments by value will be made by grocery stores, restaurants, service stations. , Used in commercial category establishments like clothing stores, government services, pharmacies and hospitals which are frequented by people. Similarly, e-commerce, gaming, utilities, government and financial services contributed more than 80 percent by volume and 75 percent by value of the total transactions in the online sector.

According to the report, the top 10 states and union territories in terms of UPI payments are Maharashtra, Kerala, Tamil Nadu, Karnataka, Delhi, Telangana, Uttar Pradesh, Gujarat, Andhra Pradesh and West Bengal. The report on the growth of the digital payments ecosystem in India said payment acceptance infrastructure channels witnessed growth between January 2022 and June 2023. During this period, POS terminals increased by 44 percent to 80.9 lakh, while UPI QR increased by 79 percent to 27.2 crore. The growth in POS terminals has also been helped by RBI’s PIDF scheme, while UPI QR growth has been driven by private companies dominating UPI acceptance. According to the report, UPI transactions are set to almost double from Rs 8.3 lakh crore in January 2022 to an impressive Rs 14.7 lakh crore in June 2023.

The report also says that the penetration of UPI has also increased in rural India. If we compare the first half of last year with the first half of this year, the number of UPI transactions in rural areas increased by 62 from 31.95 billion to 51.91 billion. Similarly, UPI transactions worth Rs 56.59 lakh crore were done in these areas in the first half last year, which was equal to Rs 83.17 lakh crore with an increase of 47 percent in the first half this year. During this period, the average payment size there decreased by 10 percent from Rs 1774 to Rs 1604.

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