The Story of Massive Adoption of UPI Payments
Ruby Consulting’s Business Analytics team analysed the usage data of various payment systems prevalent in India for last 2 years. The payment data analysed primarily comprises of payment transactions, cash withdrawals, card payments and settlement transactions.
UPI has clearly emerged as a game-changer in payments owing to the ease of UPI payments backed by growing internet penetration, smartphones becoming omnipresent and various apps like Google Pay, PhonePe, PayTM embedding UPI.
3 Key Observations
- While total value of monthly transactions for all modes grew from Rs. 421 billion in June, 2020 to Rs. 549 billion in December, 2021 (Up 30%), that for UPI has grown from Rs. 87 billion to Rs. 265 billion, a whopping increase of 204%
- UPI has seen a massive adoption with compounded monthly growth rate (CMGR) of 5.2% for last 6 months to December 31, 2021 vis-a-vis CMGR of 1.1%, 1.4% and 3.7% for RTGS, NEFT, IMPS respectively
- Despite super-fast growing adoption from bottom of the pyramid, average ticket-size has come down only nominally from Rs. 1,958 to Rs. 1,806. While Average ticket size for all modes combined has almost halved down to Rs. 27,339 from Rs. 51,097
Check-out our quick, interactive & analytical dashboard below:
The different methods of initiating and completing the said transactions are controlled & regulated by specified government agencies and other institutions (operators).
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