India’s digital payments ecosystem continues to witness explosive growth, with UPI transaction volumes skyrocketing 52% in the first half of 2024. Between January and June 2024, the number of UPI transactions soared to 78.97 billion, a dramatic increase from 51.9 billion in the same period of 2023. The value of these transactions also jumped by 40%, from ₹83.16 trillion to ₹116.63 trillion, as reported by Worldline India.
Despite this rapid growth, the Average Ticket Size (ATS) of UPI transactions fell by 8%, reflecting an increased use of UPI for smaller, everyday purchases. ATS for person-to-merchant (P2M) transactions dropped slightly, underscoring UPI’s role in micro-transactions, while PhonePe, Google Pay, and Paytm continued to dominate the UPI ecosystem in terms of volume and value.
UPI’s impact goes beyond consumer convenience, with its widespread adoption bolstering economic inclusivity by bringing more people into the digital economy. With increasing ease of use and integration into day-to-day financial activities, UPI is paving the way for more substantial digital transactions in the future.
