Value of transactions on PhonePe in Q4CY21 grew 26% sequentially to $155 bn

PhonePe platform drove a cumulative 6.63 billion transactions in Q4, according to key digital payment trends from PhonePe Pulse Q4 2021

Walmart-owned digital payments firm PhonePe platform drove a cumulative 6.63 billion transactions in Q4, a 26 per cent quarter-on-quarter (QoQ) jump, according to key digital payment trends from PhonePe Pulse Q4 (October-December) 2021. The Total Payment Value (TPV) of transactions processed grew 26 per cent QoQ to $155 billion, mirroring the growth in the number of transactions.Money transfers with UPI (unified payments interface) and merchant payments continued to register massive growth reaching 2.72 billion and 3.15 billion respectively. About 25 Million merchants were digitized across 15,700 towns and villages in India, which continued to help offline merchant payments register tremendous growth.

“As predicted in our Q3 report, we saw the merchant transactions register robust QoQ growth driven by the holiday season, festivities and multiple e-commerce shopping sales. The data and insights from Pulse clearly indicate that the fundamental shift we are seeing in consumer behaviour towards contactless payments is here to stay,” said Karthik Raghupathy, head of strategy and investor relations at PhonePe. “As digital payments become an ingrained habit for both customers and merchants, we expect to continue seeing a surge in volumes across use cases for Q1 2022 as well. We are excited to see what interesting insights and trends the next quarter will unveil.”

Further, the trend of digital payments becoming a Pan-India habit which was observed in Q3, continued in Q4 as well with 722 out of 726 districts in the country clocking positive growth in the number of registered users and digital transactions.

Geographically, Goa (71 per cent), Andaman (41 per cent), Assam (37 per cent) were the top 3 states and union territories in terms of QoQ transaction growth. Maharashtra registered 27 per cent growth and became the first state to cross a billion transactions in a quarter (1.01 billion transactions). Karnataka was a close second showing 24 per cent QoQ growth and driving 932 million transactions.