Worldline unveiled India Digital Payments Report for 1H 2024 (January to June 2024) which captures a series of noteworthy trends and shifts within the digital payments industry. The report reveals that UPI remains dominant in the payment system and is rapidly expanding its reach beyond India. In 1H 2024, the most visited in-store merchant categories included grocery stores, restaurants, service stations, clothing stores, government services, pharmacies, and hospitals. Together, they represented approximately 68% of transaction volume and nearly 53% of total transaction value. In the online sector, e-commerce, gaming, utilities, government services, and financial services accounted for around 81% of transaction volume and about 74% of total transaction value.
The number of UPI transactions rose significantly from 8.03 billion in January 2023 to 13.9 billion by June 2024. This growth in volume was matched by an increase in transaction value, which climbed from INR 12.98 trillion in January 2023 to an impressive INR 20.07 trillion in June 2024. When comparing 1H 2024 to the same period in 2023, UPI transaction volume saw a substantial increase of 52%, rising from 51.9 billion to 78.97 billion. Similarly, the value of transactions grew by 40%, increasing from INR 83.16 trillion to INR 116.63 trillion.
Ramesh Narasimhan, Chief Executive Officer – Worldline India, said, “The data in this report highlights several key trends that showcases the scale and speed at which digital payments are becoming a part and parcel of everyday life across the country. For instance, UPI remains the dominant player, with over 78 billion transactions in the first half of 2024 alone, which is a 52% increase in volume compared to 1H 2023. This significant rise in UPI transactions, particularly in the person-to-merchant (P2M) segment, further cements its position as the preferred method for micro-transactions, demonstrating long-term sustainability and even movement to larger transactions in the coming years. The payment infrastructure also continues to grow as well. The number of POS (Point of Sale) terminals deployed on the field crossed the 8.96 million mark.
At Worldline, our goal is to continue facilitating the adoption of these digital solutions, creating a seamless and secure ecosystem that serves both consumers and businesses. We are confident that as India continues to embrace digital payments, the benefits will extend far beyond convenience, driving greater economic participation, financial inclusion, and overall growth.”
Payments acceptance infrastructure
Payments Acceptance infrastructure has experienced robust growth overall. Between January 2023 and June 2024, the number of POS terminals increased by 17%, rising from 7.65 million to 8.96 million. Meanwhile, the number of BQRs grew by 22%, reaching 6.16 million, up from 5.06 million in January 2023. Notably, UPI QRs saw a remarkable growth of 39%, surging to 340 million from 244.23 million during the same period. This expansion in UPI QRs is also reflected in the increasing volume of UPI transactions.
Top POS terminals deployers:
As of June 2024, Axis Bank, ICICI Bank, RBL Bank, HDFC Bank, State Bank of India, IndusInd Bank, Canara Bank, Yes Bank, Kotak Mahindra Bank, and Bandhan Bank collectively accounted for 95% of the terminals deployed.
Top UPI apps, remitter and beneficiary banks: 3 UPI apps dominate the landscape in terms of volume and value: PhonePe, Google Pay, and Paytm. As of June 2024, these three apps accounted for 94.83% of all UPI transaction volume, down from 95.68% a year earlier. In terms of transaction value, they represented 92.21% in June 2024, compared to 93.65% in the same month the previous year.
Highest transactions volume – Merchant categories (January to June 2024)
The below merchant categories highlight where the majority of UPI P2M transactions occurred. This insight helps explain the decrease in average ticket sizes alongside the increase in transaction volumes. These categories typically involve smaller ticket sizes but are associated with a higher volume of transactions.
P2P and P2M transactions: UPI transactions consist of person-to-person (P2P) and person-to-merchant (P2M) transactions, with P2M representing payments for goods and services. In 1H 2023, P2P transactions grew from 22.75 billion to 30.03 billion in 1H 2024, marking a 32% increase. The value of P2P transactions also rose, from INR 63.99 trillion to INR 85.17 trillion, a 33% increase. During the same period, P2M transaction volume surged from 29.15 billion to 48.94 billion, an impressive 68% increase, while the value of P2M transactions grew from INR 19.39 trillion to INR 31.45 trillion, reflecting a 62% increase.
Average ticket size: the average ticket size (ATS) of all UPI transactions in 1H 2023 was INR 1,603, while it decreased to INR 1,478 in 1H 2024, reflecting an 8% drop. In contrast, the ATS for person-to-person (P2P) transactions saw a slight increase, rising from INR 2,812 to INR 2,836—up 1%. Meanwhile, the ATS for person-to-merchant (P2M) transactions fell from INR 667 to INR 643, a reduction of 4%. This ongoing decline in P2M ATS indicates that UPI has increasingly become the preferred method for microtransactions, highlighting its long-term sustainability. If the median value of UPI transactions were publicly available, anecdotal evidence suggests it would likely reveal a significant usage of the platform for transactions of INR 100 or less.
Credit, debit and prepaid cards
In June 2024, the total number of cards reached 1.451 billion, reflecting an 11% year-over-year increase. This total included 103.8 million credit cards, 979.71 million debit cards, and 367.5 million prepaid cards, corresponding to year-over-year growth rates of 26%, 4%, and 32%, respectively, compared to January 2023.
The top 5 issuers of credit cards were HDFC, SBI, ICICI, Axis, and Kotak, while the leading issuers of debit cards were SBI, Bank of Baroda, Canara Bank, HDFC, and Union Bank of India. Private sector banks issued 71% of credit cards, compared to 24% from public sector banks. In contrast, public sector banks accounted for 65% of debit cards, with private sector banks issuing 25%. The remaining cards were issued by payment banks, small finance banks, and foreign banks. This clear contrast—private sector banks dominating credit card issuance and public sector banks leading in debit cards—suggests a higher risk appetite among the former, while the latter focuses on providing banking services to a broader population, including the unbanked.
In contrast to card issuance, the volume of card transactions in 1H 2024 totaled 3.735 billion, reflecting a 3% growth from 1H 2023.
In 1H 2024, debit card transactions totaled 0.92 billion, representing a 33% decline from 1.379 billion in 1H 2023. In contrast, prepaid card transactions grew to 0.77 billion, reflecting an 8% increase. Meanwhile, credit card transactions reached 2.04 billion, marking a significant 32% increase from 1.55 billion in 1H 2023.
The total value of card transactions in 1H 2024 reached INR 13.49 trillion, reflecting a 21% increase from 1H 2023. This growth was primarily driven by credit cards, which saw a transaction value of INR 10.62 trillion—an impressive 37% rise from INR 7.74 trillion in 1H 2023. In contrast, debit card transaction values fell to INR 2.60 trillion, an 18% decrease from INR 3.17 trillion. Meanwhile, prepaid card transactions grew to INR 274 billion, marking an 18% increase from INR 231 billion.
The average ticket size (ATS) for all cards in 1H 2024 was INR 2,629, representing a 2% increase from 1H 2023. For credit cards, the ATS rose to INR 5,190 vs INR 4,992 in 1H 2023, a 4% increase, while prepaid cards saw an ATS of INR 357 vs INR 325 in 1H 2023, up by 10%. In contrast, debit cards had an ATS of INR 2,830 vs INR 2303 in 1H 2023, reflecting a substantial 23% increase, although this was largely due to a greater decline in transaction volume compared to value.
In 1H 2024, the total volume of card transactions on POS terminals reached 2.16 billion, reflecting a 7% year-over-year increase. During this period, credit card transactions rose to 1.078 billion, marking a significant 30% increase from 828.47 million. In contrast, debit card transactions fell to 677 million, a decline of 30% from 970.32 million. Prepaid card transactions totaled 413 million, representing an impressive 82% year-over-year increase; however, this rise is attributed to changes in how the RBI reports POS and online transactions.
The value of card transactions on POS terminals in 1H 2024 reached INR 5.395 trillion, up from INR 5.14 trillion the previous year. During this period, the value of credit card transactions rose to INR 3.58 trillion, reflecting a robust growth of 21% from INR 2.957 trillion. In contrast, the value of debit card transactions declined to INR 1.75 trillion, an 18% drop from INR 2.131 trillion. Prepaid card transactions, on the other hand, increased to INR 57 billion, showing a modest growth of 5%.Top of Form
Mobile payments
Mobile payments, conducted through mobile phone apps, have experienced substantial growth. A significant portion of these transactions are UPI-based, although they can encompass various payment methods using bank accounts and more. In 1H 2024, the volume of mobile transactions reached 76.04 billion, up from 52.15 billion in 1H 2023, reflecting a 46% increase. The value of mobile transactions also rose, reaching INR 179.41 trillion in 1H 2024 compared to INR 132.40 trillion in 1H 2023, marking a 36% increase.
The average ticket size (ATS) of mobile app transactions in 1H 2024 was INR 2,359.4, reflecting a 7% decrease compared to 1H 2023. This trend illustrates how Indians are increasingly using their mobile phones to make payments for a variety of goods and services across multiple channels, primarily through UPI. The growth in this payment method suggests its stability and indicates that mobile phones will continue to drive the future of digital payments in India.
Electronic toll collection
Electronic toll collection (ETC) has transformed how we pay for tolls on the country’s roads and is increasingly being used at parking plazas and other locations. The number of tags issued has risen from 64.78 million in January 2023 to 94.56 million in June 2024, reflecting a 46% growth. This increase aligns with rising car sales and mandates supporting ETC adoption. In terms of transaction volume, 1H 2024 saw 2 billion transactions, up from 1.85 billion in 1H 2023, representing an 8% growth. The value of ETC transactions also rose to INR 343.6 billion in 1H 2024, a 13% increase compared to INR 303.4 billion in 1H 2023.