UPI is consumers’ preferred payment method with 56% market share: study

The Unified Payment Interface (UPI) has become consumers’ preferred payment method, with a 56% person-to-merchant (P2M) market share by volume in calendar year (CY) 21, according to a Wordline report. India. By value, UPI merchant transactions account for 41% of the market share.

That said, cards still dominate the merchant acceptance payments ecosystem, with a 26% market share by volume and 53% by value. Among cards, credit cards hold 26% and 8% market share by value and volume, respectively. Similarly, debit cards hold a market share of 23% and 14% respectively in terms of value and volume.

In CY21, UPI processed over 38 billion transactions, amounting to Rs 71.59 trillion. According to the report, as of December 2021, of total UPI volumes, 62% of transactions were P2P (person-to-person) while 38% were P2M. And, the average UPI P2M transaction ticket size in 2021 was 786 Rupees. According to the latest data, the P2M transaction volume on UPI has increased to 42%.

In 2021, the total number of cards in circulation, both debit and credit, in the country crossed the one billion mark, with 1006.7 million cards in December 2021. While credit cards in circulation increased by 14%, compared to 60.39 million in December 2020 to 68.95 million in December 2021, while the outstanding balance of debit cards increased by 6%, from 886.41 million to 937.75 million during the same period.

In the credit card segment, private banks issued approximately 67% of the cards, with HDFC Bank, ICICI Bank and SBI Cards being the major issuers, in debit cards, public sector banks accounted for 68% of the cards issued due to issuance of RuPay debit cards on Jan Dhan accounts. In 2021, 68 million debit cards were issued under this program.

In CY21, the credit card volume and value stood at Rs 2.15 billion and Rs 8.88 trillion respectively. And the volume and value of debit card transactions stood at Rs 4.12 billion and Rs 7.42 trillion respectively.

Comments are closed.