In India, payment modes like UPI, debit and credit cards, and prepaid payment instruments — Mobile and Prepaid cards —processed 87.92 billion transactions worth Rs. 149.5 trillion during 2022, according to a new report. In terms of UPI, Person-to-Merchant (P2M) and Person-to-Person (P2P) are the most preferred payment modes among consumers with a market share of 40 percent and 44 percent in terms of transactions volume (UPI was 84 percent in total), according to Worldline in its India Digital Payments Annual Report.
However, in terms of value, Unified Payments Interface (UPI) P2M accounted for 18 percent share whereas UPI P2P accounted for 66 percent of digital transactions by value. P2P transactions are not necessarily payments and can also be potentially money transfers among people.
This is followed by payment through credit and debit cards which accounted for 7 percent in volume and 14 percent in value, the report said. The adoption of credit cards is growing at a healthy pace as it has long been a preference of customers when it comes to high-ticket size transactions and is evident that highlights the average ticket size of all payment modes.
Ramesh Narasimhan, Chief Executive Officer, 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.”
The year 2022 saw an ever-increasing adoption of digital payments, with UPI leading the way, according to the report. Popular payment instruments like UPI, cards, prepaid payment instruments (PPIs) were already clocking over Rs. 149.5 trillion worth of digital transactions in 2022. In 2023 and beyond, Worldline said in its report that it will continue to collaborate with its merchants, partner banks, fintechs, e-commerce players and invest in the technology and infrastructure needed to build a more inclusive and open financial ecosystem.