India records 20.5 bn online transactions worth ₹36 lakh cr in Q2

India has recorded as many as 20.57 billion online transactions worth ₹36.08 lakh crore between July and September 2022. UPI P2P accounted for 49% in volume and 67% in value. In terms of merchant transactions, UPI P2M emerged as the preferred payment mode, with a market share of 34% in volume and 17% in terms of value, says the Worldline’s India Digital Payment report.

Payments through credit and debit cards accounted for 8% in volume and 14% in value. “While UPI remains a dominant payment mode, adoption of credit cards is growing at a healthy pace; it remains the preferred mode for high ticket size transactions,” the report said.

In Q2, India recorded over 17.4 billion unified payments interface (UPI) transactions worth ₹30.4 lakh crore.  With this, the UPI transaction volume and value surged 118% and 98%, respectively, in the said quarter.

For the UPI transaction in Q2, State Bank of India, HDFC Bank, Bank of Baroda, Union Bank and ICICI Bank were the top remitter banks, whereas the top beneficiary banks were Paytm Payments Bank, YES Bank, State Bank of India, Axis Bank and ICICI Bank.

However, online transactions through third-party payment apps were highest between July and September, with PhonePe, Google Pay and Paytm emerging as the top UPI apps. Of the total UPI volumes, P2P transactions accounted for 56%, whereas P2M transactions accounted for 44%.

The private sector banks accounted for about 74% of the point-of-sale (POS) terminal market share in UPI transactions, whereas the POS market share for public sector banks stood at 18%. Payments banks accounted for 7% of the POS market and foreign banks held 1% of the POS market.

In Q2 of 2022-23, 1 billion credit and debit cards have been circulated. The credit card circulation grew 25% YoY to 78.7 million, compared to 62.81 million in the same period last year. The number of debit cards saw a surge of 2% to 921.75 million in Q2, compared to 906 million in the same period last year. SBI emerged as one of the top banks for issuing credit and debit cards.