upi becoming the preferred digital payment system for Indian customers. About 88 billion digital transactions were done in 2022, whose value has been around Rs 150 trillion. UPI has the highest share in these digital payments. According to the India Digital Payments Annual Report, in the year 2022, 87.92 billion digital transactions have been done through UPI (Unified Payment Interface), debit cards, credit cards and prepaid payment instruments, which was valued at Rs 149.5 trillion.
Customers have preferred to make Person-to-Merchant (P2M) and Person-to-Person (P2P) payments through UPI. UPI has a market share of 40 percent in total digital payment transactions in India. At the same time, it has a market share of 44 percent in transaction volume. In this way, the overall transaction volume of UPI has been 84 percent.
84 percent payment through UPI
Customers have done 18 percent P2M i.e. payment-to-merchant transactions through UPI last year. At the same time, 66 percent transactions have been done P2P ie person-to-person. Talking about transactions done through debit and credit cards, customers have used credit or debit cards for only 7 percent of transactions, whose value share has been 14 percent.
2022 has seen a huge increase in digital payments. People are using UPI to transfer money to each other. Be it a metro city or a village, customers are liking to make payments through UPI. The digital transaction figure in India has reached 149.5 trillion, which is a record in itself.
boost digital infrastructure
NPCI (National Payment Corporation of India) as well as smartphones and high speed internet connectivity have also contributed a lot in promoting UPI. Since the launch of 5G service in India in the year 2022, better internet connectivity has been available, due to which NPCI has benefited in infrastructure development for digital payments. Due to the availability of cheap 4G/5G smartphones, users are upgrading from feature phones to smartphones. With the improvement of digital payment infrastructure, users are getting the convenience of sending money online.
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