Digital payments in India are on a steady rise. The total volume of UPI transactions this quarter was 2.1 billion, a 328 percent rise from the first quarter last year.Tenzin Norzom
Worldline India on Wednesday launched India’s digital payments report for the first quarter this year, detailing the trends across traditional channels like debit and credit cards, and new payment methods like e-wallets from January to March.
According to the report, UPI transactions have recorded a steady increase. The total volume of UPI transactions this quarter was 2.1 billion, a 328 percent rise from the first quarter last year. In terms of value, transactions increased by 495 percent, clocking Rs 3.5 trillion.
In addition to this, Point of Sale (PoS) terminals increased by 18.6 percent from 3.14 million in March 2018 to 3.72 million in March 2019.
Moreover, the number of transactions on mobile wallets increased by 24.42 percent, recording 1.12 billion in the first quarter this year while the total value of transactions was Rs 461 billion.
In terms of transactions, the top three states are Maharashtra, Karnataka, and Tamil Nadu, while the three leading cities are Bangalore, Mumbai and Chennai.
Deepak Chandnani, Managing Director of Worldline South Asia and the Middle East, said,
“In the years to come, we are confident that India will witness over a 50 percent rise in mobile-based payment transactions.”
Of the three months, January recorded the highest number of transactions with January 23 clocking the most number of transactions due to the start of Republic Day offers, followed by Lohri on January 12, and Makar Sankranti on January 13.
Looking at consumer spending behaviour, the highest volume and value of transactions were at restaurants, petrol stations, grocery, apparel stores, and speciality retail stores. These accounted for about 65 percent volume of transactions and about 40 percent value of transactions.
The categories remained the same for both credit and debit card transactions, and an additional 10 million credit cards and 64 million debit cards were in use between March 2018 and March 2019, the report added.