UPI transactions up 118% in semi-urban, rural retail stores in 2023: Study
In 2023, United Payments Interface (UPI) transactions at retail establishments in rural and semi-urban areas witnessed a substantial 118% year-on-year increase, indicating the growing prevalence of online payment methods in Tier-II cities. The report, titled 'Retail-O-Nomics' by fintech firm PayNearby, revealed a corresponding 106% increase in transaction value. Additionally, the adoption of Mobile Point of Sale (mPOS) experienced a 5% uptick during the same period. The findings are based on a survey conducted across over a million shops from January to November.
The UPI transactions encompass various services beyond banking and financial transactions, extending to digital services such as utility payments, cash collection, credit, insurance, assisted commerce, and more. This signals a noteworthy shift in consumer behavior in these regions, indicating an increasing preference for assisted digital methods to fulfill their banking and lifestyle requirements. Consequently, this trend contributes to their greater inclusion in the formal economy.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.