UPI was the most preferred payment mode in India in 2022

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This just in, various payment modes like credit cards, debit cards, UPI, and prepaid payment instruments in India processed over 87.92 billion transactions worth INR 149.5 trillion in 2022. The report further adds Unified Payments Interface (UPI) as one of the most preferred modes of payment including both Person-to-Merchant (P2M) and Person-to-Person (P2P).

The Beast Of Payment Modes – UPI

According to the latest report, UPI took a market share of 84 percent of transaction volume. Here, P2M took a bulk of 40 percent while P2P took 44% of the market share as per the Worldline in India Digital Payments Annual Report.

The transaction volume exceeded 74 billion in 2022 with a value of INR 126 trillion. Here, P2P was the leading component in the value sector with 66% of the total transaction volume while P2M made it to the second position at 18%. For context, credit cards took 9% of the total value transacted in 2022 while debit cards accounted for 5% followed by PPI Card and M-Wallet at 1% each.

The average ticket size for a P2M transaction was INR 687 in December 2022. On the other hand, the average transactions on the P2P node were INR 2,753 which includes payments, money transfers, etc. India saw a jump of 66% in digital transactions by value on the P2P front while P2M saw an 18% share during the same year.

Talking about other modes i.e. credit and debit cards, both saw a market share of 7% and 14%, respectively. There are 1.02 billion cards in circulation as of the end of 2022.

Credit cards in circulation increased from 69% million in December 2021 to a whopping 81.1 million in December 2022 showing an 18% increase in the same. Transactions using credit cards are on the higher side with high-ticket sizes. The POS market share saw a hike thanks to domination by seven financial instructions taking a giant 92% of the market share as of the end of 2022.

Further, the report mentions figures from PPI and AePS as well. PPI or prepaid payment instruments crossed the 16.23 billionth market in December last year with 13.34 billion wallets and 288.8 million cards. On the other hand, AePS or Aadhaar-enabled payment services took a hike in transaction volume at 2.63 billion with a value of 3.42 trillion.

According to Worldline, we could see mammoth changes in the digital payments ecosystem in 2023 such as the introduction of UPI on credit cards among others.

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