According to a study conducted by Wordline India, UPI has emerged as the most widely used form of digital transaction in 2022 in India. The study notes that over Rs 126 trillion was transferred using UPI within India, which is a 76% increase from 2021. The majority of these transactions, approximately 66%, were people-to-people transfers using UPI, while 18% of the transactions were made to merchants such as local grocery stores, jewelry shops, or online retailers. The research also highlights that the number of shops using QR codes has grown by 37% compared to 2021, reaching 7.6 million. The average transaction size for people-to-people transfers was Rs 2,753, while for transfers to merchants, it was around Rs 687.
The CEO of Worldline India, Ramesh Narasimhan, expressed amazement at the progress made in the digital payments ecosystem in India over the past few years, and noted that the adoption of multiple payment solutions is a boon for realizing the dream of a less-cash India.
Private banks lead in providing service for UPI transactions, with HDFC Bank having 20% of the share, followed by Axis Bank and ICICI Bank. The only state-owned bank that had a substantial contribution in this area was State Bank of India with 15% market share. Credit cards come after UPI with about 9% share in the digital transactions space. The report stated that while UPI is the preferred mode for smaller transactions, bigger transactions are done using credit cards.
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