Average value of UPI, RuPay transactions below Rs 2000, marking stagnancy

Digital transactions have increased many times, but their average ticket size is not growing for the domestic payments card.

Last week, the government decided to incentivise banks and fintech players by paying them a percentage of transaction value per transaction made through the domestic RuPay debit card, or a below-Rs 2,000 transaction made using Unified Payments Interface (UPI).

A quick look at transactions under the two modes shows that the average value of transaction is below Rs 2,000 for use of RuPay card at Point-of-Sale machines (PoS), on e-commerce platforms, and for UPI transactions.

UPI transactions quadrupled into the pandemic, from close to one billion per month before, to more than 4 billion/month now. The value transacted has