Financial news

In 2022, payment modes like UPI, Debit and Credit cards, Prepaid Payment Instruments – Mobile and Prepaid cards processed 87.92 billion transactions worth Rs 149.5 trillion.

UPI continues to be the dominant channels for digital payments. The number of transactions in 2022 touched 74 billion transactions, a 70 per cent increase in the year. The value of transactions was INR 126 trillion, a 54 per cent increase, revealed a latest report by Worldline.

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

This signals the deep entrenchments of UPI P2M transactions; it is being used for large as well as very small transactions, the latter being the most difficult to move away from cash.

UPI transactions are being driven by the proliferations of QRs – it was 237 million in December’22 compared to 152 million in January’22, the report highlighted.

It is evident that UPI Person-to-Merchant (P2M) and Person-to-Person (P2P) are the most preferred payment modes among consumers with a market share of 40 per cent and 44 per cent in terms of transactions volume (UPI was 84 per cent in total). However, in terms of value, UPI P2M accounted for 18 per cent share whereas UPI P2P accounted for 66 per cent of digital transations by value (UPI was 84 per cent in total).

As of Year 2022, the top 5 UPI Apps in terms of volume and value were PhonePe, Google Pay, and Paytm Payments Bank App, Amazon Pay and Axis Bank.

The top 5 UPI remitter banks as of 2022 are State Bank of India, HDFC Bank, Bank of Baroda, Union Bank of India and ICICI Bank. The top 5 UPI beneficiary banks were, Paytm Payments Bank, YES Bank, State Bank of India, Axis Bank and ICICI Bank, revealed the report.

By December 2022, 54 per cent of UPI transactions volume were P2M while 46 per cent of transactions volume were P2P whereas in terms of value, 23 per cent of transactions were P2M while 77 per cent of transactions were P2P. As of December 2022, total number of Bharat QRs were 4.96 million, while UPI QR stood at 237.94 million, registering an increase of 65 per cent as compared to December 2021.