UPI QR transactions jump 33% at retail stores in Bharat this year: Report

A report by PayNearby highlights a 33% increase in UPI transactions at retail stores in semi-urban and rural areas this year, underscoring the growing adoption of digital payments. Additionally, the report reveals a 127% rise in transaction volume for insurance policy purchases and premium collections, alongside a 96% increase in new customer adoption. This reflects digital retail stores' crucial role in addressing the challenges of insurance penetration across Bharat. The data is based on real transaction data from over 10,00,000 small retailers offering financial and digital services across rural and semi-urban India. 

The report, Retail-O-Nomics, also shows a remarkable 297% rise in transaction volumes for credit products, including business loans, gold loans, personal loans, and revolving credit in these areas, signalling a growing demand for credit solutions at the grassroots level. However, there was a slight decline in micro-ATM and Aadhaar Enabled Payment System (AePS) cash withdrawals in 2024, with the average cash withdrawal dropping from US$ 30.82 (Rs. 2,624) in 2023 to US$ 29.15 (Rs. 2,482) in 2024. Notably, AePS withdrawals surged by 35-45% during Direct Benefit Transfer (DBT) releases, particularly under schemes like PM Kisan Yojana. Cash withdrawals in Jammu and Kashmir saw impressive growth, with a 58% increase in value and 74% in volume. Bajaj, Founder, MD & CEO of PayNearby, Mr. Anand Kumar, stated that equipping local retailers with tools for offering diverse services such as insurance, e-commerce, and lending empowers them to drive financial access and economic progress at the grassroots level. 

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