According to the report by Worldline India titled ‘India Digital Payments Annual Report 2022‘ Unified Payments Interface (UPI) continued to be the most preferred medium for digital payments in 2022 in India with a 70% increase in the number of transactions to 74 billion and a 54% increase in the value of transactions to Rs 126 trillion.
- A total of 8,792 crore digital payments were undertaken in 2022 worth Rs 149.5 lakh crore.
Assessment:
The report has analyzed transactions available in public databases as well as transactions processed by Worldline India in 2022 (Jan – Dec) and derived some unique insights.
The UPI Story:
The UPI volume and value market share was 84%. It recorded 91% increase in volume and over 76% increase in value in Year 2022 as compared to Year 2021.
- By December 2022, 54% of UPI transactions volume was Person-to-Merchant (P2M) while 46% of transactions volume was Person-to-Person (P2P) whereas, in terms of value, 23% of transactions were P2M while 77% of transactions were P2P.
- The increased usage of UPI is driven by the expansion of Quick Response (QR) codes i.e. the UPI QR stood at 237.94 million, registering an increase of 65% as compared to December 2021 whereas Bharat QRs were 4.96 million.
The Toppers of UPI Usage (As of 2022):
| Top 5 UPI Apps in terms of volume and value | Top 5 UPI Remitter Banks | Top 5 UPI Beneficiary Banks |
|---|---|---|
| PhonePe | State Bank of India (SBI) | Paytm Payments Bank |
| Google Pay | HDFC Bank | YES Bank |
| Paytm Payments Bank App | Bank of Baroda | SBI |
| Amazon Pay | Union Bank of India (UBI) | Axis Bank |
| Axis Bank | ICICI Bank | ICICI Bank |
Deployment of Point-Of-Sale (POS)
i.The number of POS terminals at the end of 2022 was 7.55 million, a growth of 37% YoY (Year-On-Year)
ii.Private Sector Banks are dominant POS deployers with 74% market share while Public Sector Banks account for 18%.
- Payments Banks and Foreign Banks continue to have a 7% and 1% market share respectively.
iii.As of December 2022, HDFC Bank, Axis Bank, ICICI Bank, State Bank of India, RBL Bank,
Paytm Payments Bank, IndusInd Bank covers 92% of POS market share.
iv.The number of credit card transactions at POS accounted for 1.47 billion while e-commerce was 1.29 billion.
v.Out of the total debit card volume, transactions at POS accounted for 2.38 billion while transactions at ecommerce were 1.26 billion.
Card Issuance in 2022:
i.In 2022, there were 1.02 billion credit and debit cards in circulation, accounting for 7% of transaction volume and 14% of transaction value.
ii.Credit card issuance increased 18% to 81.1 million, while debit cards increased slightly by 0.2% to 939.4 million from 938 million.
iii.Credit card transactions were 2.76 billion in volume and Rs 13.12 trillion in value, with Rs 5.1 trillion at POS and Rs 8.1 trillion on e-commerce.
iv.Debit card transactions totaled 3.64 billion in volume and Rs 7.4 trillion in value, with Rs 4.85 trillion at POS and Rs 2.56 trillion on e-commerce.
Highlights:
i.In 2022, physical merchants (grocery, restaurants, clothing, etc.) accounted for 43% of transactions by volume and 40% by value.
ii.E-commerce, gaming, and financial services made up 85% of online transactions by volume and 25% by value.
iii.Education, travel, and hospitality comprised 15% of online transactions by volume and 75% by value.
iv. By December 2022, number of prepaid payment instruments was 16.23 billion. Out of which, 13.34 billion were wallets and 288.8 million were cards.
- Total prepaid cards transactions volume and value was 1.61 billion and Rs 765.5 billion respectively.
v.In Year 2022, the number of transactions through mobile wallets was 5.87 billion and its value was Rs 2.25 trillion.
vi.In Year 2022, National Electronic Toll Collection (NETC) processed about 3.25 billion transactions worth Rs 509.11 billion registering volume increase by 31% and value increased by 37% as compared to 2021.
vii.The transactions volume passing through Bharat Bill Payment Central Unit (BBPCU) in Year 2022 stood at 985.7 million while the transactions value was Rs 1.70 trillion, registering, 75% growth in volume and 83% in value as compared to 2021.
viii..Aadhar enabled Payment Service (AePS) transactions recorded a substantial volume of over 2.63 billion transactions in volume and Rs 3.42 trillion in value, registering, 24% growth in volume and 20% in value over 2021.
Bengaluru tops the list of Indian cities with Rs 6,500 crore in digital transactions: Report
As per the data by Worldline Report, Bengaluru (Karnataka) recorded 29 million transactions valued at Rs 6,500 crore, the highest number of digital transactions across 12 cities in India in 2022.
- It is followed by New Delhi (Delhi) at 2nd with 19.6 million transactions amounting to Rs 5,000 crore, Mumbai (Maharashtra) followed with 18.7 million transactions amounting to Rs 4,950 crore at 3rd position, Pune (Maharashtra) with 15 million transactions amounting to Rs 3,280 crore at 4th, and Chennai (Tamil Nadu) with 14.3 million transactions amounting to Rs 3,550 crore at 5th place.
i.Top 10 states & UT with the highest number of transactions at physical touch points in 2022 for Worldline India: Kerala, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Delhi, Telangana, Gujarat, West Bengal and Punjab.
ii.Top 10 cities with the highest number of transactions at physical touch points in 2022 for Worldline India: Bengaluru, New Delhi, Mumbai, Pune, Chennai, Hyderabad, Ernakulam, Thiruvananthapuram, Thrissur and Coimbatore.
Recent Related News:
i.As per the Reserve Bank of India’s (RBI) ‘Quarterly Statistics on Deposits and Credit of SCBs (Scheduled Commercial Banks): December 2022’ report, the year on year (y-o-y) Bank credit growth in Q3FY23 (October– December 2022) was about 16.8% as compared with 17.2% in Q2FY23 and 8.4% in Q2FY22.
ii.According to the “2023 Global Payments Report” by global financial technology pioneer FIS, India’s e-commerce (e-com) sector is projected to grow from USD 83 billion in 2022 to USD 150 billion in 2026, as cash transactions continue to drop and UPI-based transactions continue to set all- time highs.
About Worldline India Private Limited:
CEO– Ramesh Narasimhan
Headquarter– Mumbai, Maharashtra
