Additionally, in-store transactions noticed service provider classes corresponding to grocery shops, eating places, service stations, outfitters, pharmacies and hospitals accounting for round 65% of transaction quantity and almost 50% of complete worth in the identical interval, the India Digital Funds Report H22023 mentioned on Wednesday.
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By way of cost modes used, Unified Funds Interface (UPI) continues to be the preferred, the report mentioned. The variety of UPI transactions grew 56% year-on-year between July and December 2023, with the amount rising to 65.7 billion from 42.1 billion within the second half of 2022. The worth of those transactions additionally surged 44% to Rs 99.68 lakh crore.
The report additionally highlighted a major enhance in cost acceptance channels in India. Between July and December 2023, the variety of point-of-sale (PoS) terminals grew 26% to achieve 8.5 million. Non-public sector banks dominated this house with a 73% market share, whereas public sector banks accounted for 18%. Moreover, UPI QR transactions rose 57% to 317 million throughout this era.
Additionally learn | NPCI eyes a extra evenly sliced UPI pie
“The proliferation of PoS terminals has reached unprecedented ranges, concurrent with the ascendance of cellular funds as a dominant transaction avenue. This underscores the need for fintechs to regulate to a various array of cost channels,” Ramesh Narasimhan, chief govt officer, Worldline India, mentioned.
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Surge in UPI
Whereas the variety of UPI funds and the worth settled went up, the common ticket measurement of those transactions fell.
The typical ticket measurement (ATS) of UPI transactions declined 8% to Rs 1,515. For peer-to-peer (P2P) transactions, the ATS grew 4% to Rs 2,745, whereas for service provider transactions it fell 9% to Rs 656.
The high-transacting classes within the UPI person-to-merchant (P2M) transaction house embody groceries, supermarkets, eating places, and telecommunication companies.
Main UPI gamers corresponding to PhonePe, Google Pay and Paytm continued to dominate the market. In December 2023, they collectively accounted for 95.4% of all transactions by quantity, in comparison with 94.8% in December 2022.
Playing cards trailing
The report additionally famous a modest progress within the complete variety of playing cards in circulation, reaching 1.3 billion in December 2023. Bank cards noticed the very best surge with a 21% year-on-year progress to 97.9 million, adopted by a 13% progress in pay as you go playing cards and a 2% progress in debit playing cards. The quantity of card transactions declined by 7% to three.7 billion. Nevertheless, complete card transactions quantity on PoS terminals within the second half of 2023 grew by 8% to 2.18 billion.
Additionally, within the digital toll assortment house, the variety of tags issued elevated by 45% from 55.9 million in July 2022 to 81.2 million in December 2023.
