UPI Transactions Surge by 42% YoY in H2 2024, Driving Digital Payment Growth
The Unified Payments Interface (UPI) has seen a remarkable surge in transactions, recording a 42 per cent year-on-year (YoY) increase in the second half of 2024, totaling 93.23 billion transactions, according to a new report by Worldline, a leading financial service provider.
This surge signifies India’s rapidly growing digital payments ecosystem, with a notable 31 per cent rise in the total value of UPI transactions, which reached Rs 130.19 trillion. Mobile payments, another key segment, also experienced impressive growth, with 88.54 billion mobile transactions, reflecting a 41 per cent annual increase.
Key factors driving this growth include the growing adoption of UPI, the expansion of mobile-first financial solutions, and increased reliance on digital wallets and apps for seamless financial transactions. The report emphasizes that mobile transactions continue to be favored due to the convenience they offer.
A significant contributor to this boom is the widespread adoption of UPI QR codes, which saw a staggering 126 per cent increase, reaching 633.44 million QR codes across India. This adoption has played a pivotal role in empowering small businesses and local merchants, enabling them to shift to cashless transactions.
“The evolution of India’s digital payments ecosystem is happening at an unprecedented pace, with UPI leading the charge. The expansion of POS infrastructure, mobile payments, and the increasing adoption of SoftPOS technology is reshaping the landscape,” said Ramesh Narasimhan, CEO of Worldline India.
POS (Point of Sale) terminals also saw growth, surpassing the 10 million mark, with a 23 per cent increase in deployment from the previous year. The rising prevalence of SoftPOS technology, which allows merchants to turn smartphones into secure contactless payment terminals, is helping small businesses adapt without needing expensive POS hardware. The adoption of MPoC (Mobile Payment on Contactless) standards ensures the security of these transactions, even for high-value payments.
Consumer spending trends have also evolved, with credit card transactions rising by 36 per cent, reflecting their increasing role in high-value purchases. Prepaid cards saw a 35 per cent increase, while electronic toll collection, such as FASTag, rose by 12 per cent, with over 103 million FASTags issued.
Grocery stores, restaurants, pharmacies, and government services emerged as the top categories for in-store transactions, contributing to 68 per cent of transaction volume and 53 per cent of the total transaction value.
India’s digital payment revolution is well underway, with UPI continuing to lead the way in shaping the future of cashless transactions across the country.
