In India, payment modes like is i, 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 per cent and 44 per cent in terms of transaction volume (UPI 84 per cent overall), according to Worldline’s India Digital Payments Annual Report.
However, in terms of value, Unified Payments Interface (UPI) accounts for 18 percent of P2M, while UPI P2P accounts for 66 percent of digital transactions by value. P2P transactions are not necessarily payments and can potentially be money transfers between people.
This is followed by payments through credit and debit cards, which account for 7 per cent in volume and 14 per cent in value, the report said. Credit card adoption is growing at a healthy pace as it has long been a customer preference when it comes to high-ticket size transactions and this is evident from the highlights of the average ticket size across all payment modes.
Ramesh Narasimhan, CEO, Worldline India, said, “I am amazed every day by the incredible progress we have made in the digital payments ecosystem over the past few years. The adoption of multiple payment solutions has been a blessing in our journey. Realize the dream of less-cash India.
As per the report, the year 2022 is expected to see a steady rise in the adoption of digital payments, with UPI being at the forefront. Popular payment instruments such as UPI, cards, prepaid payment instruments (PPIs) are already available for 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, fintech, e-commerce players and invest in the technology and infrastructure needed to build more. Inclusive and open financial ecosystem.