India’s Digital Payments Surge 52% In 1H FY24 As UPI Leads: Report
Digital payments grows across India as UPI transactions hit 79 Billion while Mobile payments grow 46 per cent
India’s digital payments system is growing at a fast pace, with Unified Payments Interface (UPI) transactions rising 52 per cent year-on-year (YoY) to 78.97 billion in the first half (1H) of 2024, as per Worldline’s India Digital Payments Report for 1H 2024. The report shows a strong rise in UPI transactions and major changes in payment habits across India, reflecting the country’s growing use of digital financial services.
The total value of UPI transactions during 1H 2024 reached Rs 116.63 trillion, up 40 per cent from Rs 83.16 trillion in 1H 2023. This growth was driven by the increasing use of UPI across various sectors, with grocery stores, restaurants, service stations, and government services contributing about 68 per cent of the transaction volumes.
UPI’s Dominance
UPI remains the leading player in India’s digital payment space, with monthly transaction volumes increasing from 8.03 billion in January 2023 to 13.9 billion by June 2024. This 52 per cent year-on-year rise shows UPI’s growing use for both small and larger payments.
However, the average size of UPI transactions dropped from Rs 1,603 in 1H 2023 to Rs 1,478 in 1H 2024, an 8 per cent decrease. The average size of person-to-merchant (P2M) transactions also went down from Rs 667 to Rs 643, suggesting UPI is now the preferred choice for small payments, such as purchases under Rs 100.
Ramesh Narasimhan, Chief Executive Officer, Worldline India, said, “The data highlights how fast digital payments are becoming a daily habit in India. UPI, especially, has secured its position as the top choice for small payments, with a 52 per cent jump in transaction volume in just one year.”
Growth In Payment Infrastructure
India’s payment infrastructure grew significantly in 1H 2024. The number of Point-of-Sale (POS) terminals went up by 17 per cent, reaching 8.96 million, while UPI QR codes grew by 39 per cent, rising from 244.23 million in January 2023 to 340 million in June 2024. This growth has been key in supporting the rise in UPI transactions across the country.
Mobile payments, mainly driven by UPI, also saw strong growth. Transaction volumes through mobile apps increased by 46 per cent YoY, reaching 76.04 billion in 1H 2024. The total value of mobile transactions rose by 36 per cent to Rs 179.41 trillion in the same period.
This trend shows that smartphones are increasingly becoming the main tool for handling payments, with mobile apps playing a central role in managing digital transactions.
Mixed Trends In Card Payments
While digital payments are growing, card-based transactions showed mixed results. Credit card usage saw a sharp rise, with transaction volumes increasing by 32 per cent in 1H 2024. The value of credit card transactions grew to Rs 10.62 trillion, up 37 per cent from Rs 7.74 trillion in 1H 2023. On the other hand, debit card transactions dropped by 30 per cent in volume, showing a decline in their overall use.
As India continues to adopt digital payments, the report highlights the advantages of better financial inclusion, ease, and economic participation. Worldline expects further growth in UPI transactions and mobile payments, driven by ongoing technology improvements and growing trust in digital platforms.
With nearly 9 million POS terminals and the fast rise in UPI QR codes, India’s payment system is well-prepared to handle the demands of the digital economy.
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