The digital payments landscape in India is witnessing remarkable growth, as evidenced by the latest statistics from the India Digital Payments report for the second half of 2024. The Unified Payments Interface (UPI) has emerged as a powerhouse, boasting a 42% year-on-year increase in transaction volumes, with a staggering 93.23 billion transactions recorded. This surge underscores the pivotal role UPI plays in the nation’s financial ecosystem, with major players like PhonePe, Google Pay, and Paytm leading the charge.

Dominance of UPI Platforms

According to the report by Worldline, the dominance of UPI has become increasingly clear. In December 2024 alone, these three platforms were responsible for:

• 93% of all UPI transaction volumes
• 92% of the total transaction value

This significant market share illustrates how integral these apps have become to everyday transactions.

Year-on-Year Growth in Transaction Volumes

When comparing the latter half of 2024 to the same period in 2023, the report reveals impressive growth metrics:

• UPI transaction volume soared from 65.77 billion to 93.23 billion
• The value of these transactions rose from ₹99.68 trillion to ₹130.19 trillion, marking a 31% increase

This growth is not just a trend; it’s a testament to the increasing reliance on digital payments among consumers and businesses alike.

Breakdown of Transaction Types

UPI transactions can be divided into two categories: person-to-person (P2P) and person-to-merchant (P2M). Here’s how they performed in the second half of 2024:

• P2P Transactions:

  • Volume: Increased from 27.04 billion to 35.21 billion (30% growth)
  • Value: Grew by 26%
• P2M Transactions:
  • Volume: Jumped from 38.73 billion to 58.03 billion (50% growth)
  • Value: Increased by 43%

The Future of Digital Payments

Ramesh Narasimhan, CEO of Worldline India, remarked on the rapid evolution of India’s digital payments landscape. He emphasized that the surge in UPI usage, combined with the expansion of Point of Sale (POS) infrastructure and the adoption of SoftPOS technology, is transforming how businesses manage transactions. This shift is making digital payments more accessible than ever.

Insights on Average Transaction Size

Interestingly, the average ticket size for UPI transactions in the latter half of 2024 was ₹1,396, slightly down from ₹1,515 in the previous year, indicating an 8% decline. This shift could reflect changing consumer behavior or increased adoption of smaller transactions.

In summary, India’s digital payment ecosystem is undergoing a seismic shift, led by UPI’s unparalleled growth and the adoption of innovative technologies. As consumers continue to embrace mobile transactions, the landscape is set for even more exciting developments in the future.