UPI is continuing to dominate digital payments, all because of a wide use of QR codes

According to a report by Worldline India on India’s digital payments, the widespread use of Quick Response (QR) codes, which has increased by 56% in the calendar year 2022, has contributed to the continued dominance of India's flagship payment platform, Unified Payments Interface (UPI), as the most popular method for digital payments in the nation.

In 2022, UPI processed over 74 billion transactions totalling US$ 1.54 trillion (Rs. 126 trillion), the report mentioned. The value of transactions increased by 54% during the same period, while the volume of transactions also increased by 70% year-over-year (YoY). UPI processed 84 billion transactions in FY23, totalling US$ 1.70 trillion (Rs. 139.09 trillion).

The research claims that the growth of QR codes is what is responsible for the increase in UPI transactions, which reached 237 million in December, 2022 from 152 million in January, 2022. As of December 2022, there were 4.96 million Bharat QRs in use, whereas there were 237.94 million UPI QRs, registering an increase of 65% from December, 2021.

By the end of 2022, about 54% of UPI transactions were person-to-merchant transactions (P2M) in volume terms, and in value terms they were 23%.

Consumers prefer UPI Person-to-Merchant (P2M) and Person-to-Person (P2P) payment methods the most overall, with a market share of 40% and 44% in terms of transaction volume (UPI was 84% overall). UPI P2P accounted for 66% of digital transactions by value (UPI was 84% overall), whereas UPI P2M accounted for 18% of digital transactions by value.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.