In 2022, fee modes like UPI, Debit and Credit playing cards, Prepaid Payment Instruments – Mobile and Prepaid playing cards processed 87.92 billion transactions price Rs 149.5 trillion, mentioned a brand new report.
Worldline has printed the -‘India Digital Payments Annual Report’ for 2022. The report encapsulated vital fee tendencies of the trade for the calendar 12 months 2022 and has derived some distinctive insights.
The report mentioned that it’s evident that UPI Person-to-Merchant (P2M) and Person-to-Person (P2P) are probably the most most well-liked fee modes amongst customers with a market share of 40% and 44% when it comes to transaction quantity (UPI was 84% in complete). However, when it comes to worth, UPI P2M accounted for 18% share whereas UPI P2P accounted for 66% of digital transactions by worth (UPI was 84% in complete). It needs to be famous that P2P transactions aren’t essentially funds and may also be doubtlessly cash transfers amongst folks.
This is adopted by fee by way of credit score and debit playing cards which accounted for 7% in quantity and 14% in worth. The adoption of bank cards is rising at a wholesome tempo because it has lengthy been a choice of consumers in the case of excessive ticket dimension transactions and is obvious within the chart (on proper) that highlights the Average Ticket Size of all fee modes.
Ramesh Narasimhan, CEO, Worldline India, mentioned, “I’m amazed on daily basis to see the unimaginable progress we’ve made within the digital funds ecosystem over the previous few years. The adoption of a number of fee options is a boon in our journey to understand the dream of a less-cash India.
The 12 months 2022 witnessed an ever growing adoption of digital funds, with UPI main the way in which. Popular fee devices like UPI, playing cards, PPIs had been already clocking over Rs 149.5 trillion price of digital transactions in 2022. In 2023 and past, Worldline will proceed to collaborate with our retailers, companion banks, fintechs, ecommerce gamers and put money into the know-how and infrastructure wanted to construct a extra inclusive and open monetary ecosystem.”
Unified Payments Interface (UPI)
In the year 2022, UPI clocked over 74.05 billion transactions in volume and Rs 126 trillion in terms of value. Its transactions volume and value almost doubled since last year as it recorded 91% increase in volume and over 76% increase in value in Year 2022 as compared to Year 2021.
As of year 2022, the top 5 UPI Apps in terms of volume and value were PhonePe, Google Pay, and Paytm Payments Bank App, Amazon Pay and Axis Bank while top Remitter and Beneficiary Banks are highlighted below:
The Average Ticket Size (ATS) for UPI P2P transactions was Rs 2753 and ATS for UPI P2M transactions was Rs 687 by December 2022.
Merchant Acquiring
As of December 2022, the total number of POS terminals deployed by merchant acquiring banks breached the 7.55 million mark; a 37% YoY growth.
Private Sector Banks are dominating the space with 74% market share while Public Sector Banks account for 18%. Payments Banks and Foreign Banks continue to have a 7% and 1% market share respectively.
The top POS deployers were HDFC Bank, Axis Bank, ICICI Bank, State Bank of India, RBL Bank, Paytm Payments Bank, IndusInd Bank covering 92% market share as of December 2022.
Card Issuance
The total number of credit and debit cards in circulation by the end of 2022 was 1.02 billion. The number of outstanding credit cards increased by 18% from 69 million in December 2021 to 81.1 million in December 2022 while outstanding debit cards increased by 0.2% from 938 million to 939.4 million during the same period.
In the year 2022, credit cards volume and value stood at 2.76 billion and Rs 13.12 trillion respectively. The number of credit card transactions at POS accounted for 1.47 billion while e-commerce was 1.29 billion. In terms of value, consumers transacted Rs 5.1 trillion at POS and Rs 8.1 trillion on e-commerce transactions via credit cards in the year 2022.
In 2022, debit card transactions volume and value stood at 3.64 billion and Rs 7.4 trillion respectively. Out of the total debit card volume, transactions at POS accounted for 2.38 billion while transactions at e-commerce was 1.26 billion. In terms of value, Rs 4.85 trillion was processed at POS terminals while Rs 2.56 trillion was processed at e-commerce via debit cards.
Prepaid Payment Instruments
By December 2022, the number of prepaid payment instruments was 16.23 billion. Out of which, 13.34 billion were wallets and 288.8 million were cards.
NETC Fastag
In the year 2022, NETC processed about 3.25 billion transactions worth Rs 509.11 billion. The transaction volume increased by 31% while value increased by 37% as compared to the Year 2021. As of December 2022, total number of banks live with NETC FASTag were 36.
Bharat Bill Pay
The transactions volume passing through Bharat Bill Payment Central Unit (BBPCU) in Year 2022 stood at 985.7 million while the transactions value was Rs 1.70 trillion. It registered a growth rate of 75% and 83% in volume and value respectively as compared with the year 2021.
Aadhar Enabled Payment Service (AePS)
In the year 2022, AePS transactions recorded a substantial volume of over 2.63 billion transactions in volume and Rs 3.42 trillion in value. It registered about 24% growth in volume and 20% in value over the year 2021. AePS is a bank led model which allows online interoperable financial inclusion transactions at PoS (MicroATM) through the Business correspondent of any bank using the Aadhaar authentication.
Worldline India Insights
In 2022, frequently visited physical merchant categories like grocery stores, restaurants, clothing and apparel, pharmacy and medical, hotels, jewellery retail, specialty retail, household appliances and departmental stores together accounted for over 43% in terms of volume and about 40% in terms of value.
In the online space, e-commerce (shopping for goods and services), gaming, utility and financial services contributed to over 85% transaction in terms of volume and 25% in terms of value. Education, Travel & Hospitality sector contributes to the remaining 15% & 75% in terms of volume and value respectively.
The top 10 states and UT with the highest transactions for physical touch points in 2022 for Worldline India were Kerala, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Delhi, Telangana, Gujarat, West Bengal, and Punjab.
Whereas the top 10 cities with the highest number of transactions at physical touch points in 2022 for Worldline India were Bengaluru, New Delhi, Mumbai, Pune, Chennai, Hyderabad, Ernakulam, Thiruvananthapuram, Thrissur, and Coimbatore.
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