UPI Transactions Surge by 42% as Mobile Payments Hit 88.5 Billion in H2 2024
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Synopsis
In the second half of 2024, UPI transactions experienced a remarkable 42% growth, totaling 93.23 billion transactions. This reflects the rapid expansion of India’s digital payments landscape, driven by increased mobile payment adoption and significant advancements in UPI infrastructure.
Key Takeaways
- UPI transactions rose 42% YoY to 93.23 billion.
- Mobile payments reached 88.54 billion, a 41% increase.
- Total UPI transaction value surged to Rs 130.19 trillion.
- Adoption of UPI QR codes increased by 126%.
- POS terminals surpassed 10 million in deployment.
New Delhi, April 2 (NationPress) The Unified Payments Interface (UPI) transactions surged by 42 percent year-on-year (YoY) during the second half of 2024, amounting to an impressive 93.23 billion transactions, according to a new report released on Wednesday.
India's digital payments landscape is witnessing extraordinary growth, achieving significant milestones in the latter half of the previous year, as highlighted in a report by Worldline, a financial services provider.
The overall value of UPI transactions also experienced a substantial increase, up by 31 percent to Rs 130.19 trillion.
Mobile payments have seen a remarkable uplift as well, with mobile transactions reaching 88.54 billion during the same timeframe, marking an annual increase of 41 percent.
This growth illustrates the rising consumer preference for mobile-first financial solutions, driven by the convenience and accessibility of mobile wallets and applications, according to the report.
A significant factor contributing to this growth is the increase in UPI QR code adoption, which recorded a staggering 126 percent rise, totaling 633.44 million QR codes across the nation.
This advancement has empowered digital payments for merchants, facilitating more small businesses and local shops to adopt cashless transactions.
"India's digital payments ecosystem is advancing at an unparalleled rate, propelled by UPI's widespread acceptance, the growth of POS infrastructure, and the increasing preference for mobile transactions,” stated Ramesh Narasimhan, CEO of Worldline India.
Another notable trend was the ongoing expansion of Point of Sale (POS) terminals, which have surpassed the 10 million threshold.
With a 23 percent increase in installation compared to the prior year, POS terminals are becoming more prevalent, particularly in rural and semi-urban regions.
The report also highlights the emergence of SoftPOS (software point of sale) technology, allowing merchants to use their smartphones as secure contactless payment terminals.
This innovation is transforming merchant payments, especially for small businesses, as it reduces the necessity for costly traditional POS hardware.
The adoption of MPoC (mobile payment on contactless) security standards ensures these transactions are safe and secure, even for higher-value payments.
Furthermore, the report points out shifts in consumer spending habits. Credit card transactions increased by 36 percent, indicating their growing importance in high-value purchases.
Prepaid card usage also rose by 35 percent, reflecting a demand for more flexible payment options. Electronic toll collections, such as FASTag, increased by 12 percent, with over 103 million tags issued, according to the report.
In terms of spending behaviors, grocery stores, restaurants, pharmacies, and government services emerged as the leading categories for in-store transactions, accounting for 68 percent of transaction volume and 53 percent of the total transaction value.
