In 2022, payment modes such as UPI (Unified Payment Interface), debit and credit cards, prepaid payment instruments (PPIs) processed a total of 87.92 billion transactions worth ₹149.5 trillion, reveals India Digital Payments Annual Report 2022 by Worldline.
Among all the digital payment channels, UPI continues to play a dominant role, the report further shows.
Dominance of UPI
One of the most noteworthy observations of the report is that UPI P2M (peer to merchant) and P2P (peer to peer) are the most preferred payment modes among consumers with a market share of 40 percent and 44 percent in terms of transactions volume, making a total of 84 percent.
The number of UPI transactions in 2022 touched 74 billion transactions, a 70 percent increase in the year. The value of transactions was ₹126 trillion, a 54 percent increase.
The report further highlights a number of other key observations. For instance, the average ticket size for P2M transactions in December 2022 was ₹687 while P2P transactions was ₹2,753.
The number of POS (points of sale) terminals at the end of 2022 was 7.55 million, signalling a growth of 37% YOY (year-on-year).
Credit and debit cards
The digital payments annual report also highlighted that the total number of credit and debit cards in circulation by end of Year 2022 was 1.02 billion.
Banks have increased the number of credit cards by 18 percent from 69 million in December 2021 to 81.1 million in December 2022, indicating an increased appetite for higher ticket transactions. The volume and value of transactions done on credit cards has seen a steady uptick through the year.
The report further points out that credit card transactions in 2023 could benefit majorly as credit cards are now eligible for doing UPI transactions.
The POS market share is dominated by seven financial institutions. The report suggests that HDFC Bank, Axis Bank, ICICI Bank, State Bank of India, RBL Bank, Paytm Payments Bank, IndusInd Bank cover 92 percent market share as of December 2022.
The number of prepaid payment instruments stood at 16.23 billion by December 2022. Out of these, 13.34 billion were wallets and 288.8 million were cards.
Even Aadhaar enabled payment service (AePS) transactions recorded a substantial volume of over 2.63 billion transactions in volume and ₹3.42 trillion in value.