UPI transaction volume grows 42% to reach 93 billion in Jul-Dec 2024

India's Unified Payments Interface (UPI) continues to dominate the digital payments landscape, with transaction volumes surging 42 per cent year-on-year (YoY) to reach 93.23 billion in the second half of 2024, a recent report has shown.

The 'India Digital Payments report for 2H 2024' report by Worldline showed that three UPI platforms are dominant in terms of volume and value: PhonePe, Google Pay, and Paytm.

In terms of transaction volume, in December 2024, the three apps accounted for 93 per cent of all transactions. In terms of transaction value, they accounted for 92 per cent in December 2024.

"When comparing the volume of UPI transactions in 2H (July-December) 2024 to 2H 2023, it increased by 42 per cent from 65.77 billion to 93.23 billion. During the same timeframe, the value of transactions increased by 31 per cent from Rs 99.68 trillion to Rs 130.19 trillion," the report said.

Besides UPI, other forms of payment under digital payments include credit cards, prepaid cards, mobile payments, and net banking.

UPI transactions are categorised into person-to-person (P2P) and person-to-merchant (P2M) transactions.

P2P transaction volume rose from 27.04 billion in the second half of 2023 to 35.21 billion in the second half of 2024, representing a 30 per cent increase. During the same period, the value of P2P transactions grew 26 per cent.

The P2M transaction volume grew from 38.73 billion to 58.03 billion, a 50 per cent increase, while the value increased 43 per cent.

"India's digital payments ecosystem is evolving at an unprecedented pace, driven by UPI's widespread adoption, the expansion of POS infrastructure, and the growing preference for mobile transactions. The rapid rise of SoftPOS technology is redefining how businesses accept payments, making digital transactions more accessible than ever," Ramesh Narasimhan, Chief Executive Officer, Worldline India, said.

The average ticket size (ATS) of all UPI transactions in 2H 2024 was Rs 1,396 as against Rs 1,515 in the year-ago period, translating into a 8 per cent decline.