India reported 9.36 billion transactions worth Rs 10.25 lakh crore processed through payment methods like credit and debit cards, prepaid payment instruments (PPI) like mobile wallets and prepaid and UPI P2M (person-to-merchant) cards, said payments industry leader Worldline in a report on digital payments in the first quarter of 2022.
He further added that UPI P2M transactions emerged as the preferred payment method for consumers with a market share of 64% in terms of volume and 50% in terms of value. Credit cards accounted for 7% of transactions but 26% by value, while debit cards accounted for 10% of transactions but 18% by value.
UPI reported 14.55 billion transactions in terms of volume and Rs 26.19 lakh crore in terms of value in India, according to this report. Its volume and value of transactions have almost doubled since 2021, registering an increase of around 99% in volume and 90% in value.
State Bank of India (SBI), HDFC Bank, Bank of Baroda (BoB), Union Bank and Paytm Payments Bank were the top issuing banks during the same period. The main beneficiary banks were Paytm Payments Bank, SBI, YES Bank, Axis Bank and ICICI Bank. PhonePe, Google Pay and Paytm accounted for 94.8% of UPI transaction volume and 93% of UPI transaction volume in March 2022.
The average ticket size for UPI P2P transactions was 2,455 rupees and 860 rupees for UPI P2M transactions. The average ticket size for mobile wallets, prepaid cards, debit and credit cards stood at Rs 400, Rs 503, Rs 1,922 and Rs 4,329 respectively. Of the total UPI transaction volume in Q1 2022, 56% of transactions were P2P while 44% were P2M. in terms of value, P2M transactions contributed about 19% of UPI transactions, while P2P transactions contributed 81%.
In the first quarter of 2022, credit card transactions stood at 2.02 billion in terms of volume and Rs 8.77 lakh crore in terms of value, while debit card transactions stood at 942, 7 million in terms of volume and at Rs 1.81 lakh crore respectively. Major credit card issuers during the period were HDFC Bank, SBI, ICICI Bank, Axis Bank and RBL Bank. Major debit card issuing banks during the period included SBI, Bank of Baroda, Union Bank, Canara Bank and PNB.
Given the growing adoption of digital payments, the total number of point-of-sale (POS) terminals deployed by merchant acquiring banks stood at 6.07 million, of which more than half a million terminals were deployed in the first quarter of 2022. POS deployment grew by approximately 28 percent. cent in the first quarter of 2022 compared to the previous year.
The total number of Bharat QRs was 4.97 million in March this year, an increase of 39% from March 2021. UPI QRs stood at 172.73 million in March 2022, a huge increase of 87% compared to March 2021. Private sector banks accounted for ~70% of POS terminals while public sector banks accounted for 22%. Payment banks represented 7% and foreign banks remained at 1%.
Major acquiring banks in terms of POS deployment include HDFC Bank, Axis Bank, ICICI Bank, SBI, RBL Bank, Paytm Payments Bank, IndusInd Bank and Union Bank of India. Axis Bank and ICICI Bank recorded 68% annual growth and 52% in the first quarter of 2022 in terms of POS market share. Paytm Payments Bank is a close competitor as it saw 66% growth among the top banks deploying POS terminals.
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