UPI Transaction Value Reaches INR 130.19 Trillion in Second Half of 2024: Report This rapid growth reflects India's shift towards a cashless economy, driven by deeper digital penetration and changing consumer behaviour

India's Unified Payments Interface (UPI) continues to dominate the digital payments landscape, recording a staggering 93.23 billion transactions — a 42 per cent year-on-year surge —while transaction value jumped 31 per cent to INR 130.19 trillion in second half of 2024, according to Worldline's latest 'India Digital Payments Report for 2H 2024'. This rapid growth reflects India's shift towards a cashless economy, driven by deeper digital penetration and changing consumer behaviour.

"Between July 2023 and December 2024, the number of Point-of-Sale (POS) terminals grew by 23 per cent, reaching 10 million from 8.12 million in July 2023. Bharat QR (BQR) codes saw a 10 per cent rise, increasing from 5.81 million to 6.38 million during the same period. However, the most significant growth was in UPI QR codes, which surged by 126 per cent, jumping from 280.73 million in July 2023 to 633.44 million in December 2024," the report stated.

"There are multiple factors for the surge in UPI transactions. Internet connectivity and smartphones play a role, but now, non-smartphones also have a UPI interface. Ease of use and merchants' willingness to take money through UPI payment. This is an ecosystem growth, more than anything," said Sunil Rongala, Senior VP – Strategy, Innovation & Analytics – India, Worldline, an omnichannel payments technology player.

A notable revision in UPI QR data occurred in April 2024, with RBI records reflecting a sharp upward correction. The number of Yes Bank UPI QRs deployed surged from 187.76 million in March 2024 to 438.59 million in April 2024, significantly boosting overall figures.

As of December 2024, ten major banks dominated the PoS terminal deployment landscape, accounting for 96 per cent of all installations. These included RBL Bank, Axis Bank, ICICI Bank, HDFC Bank, State Bank of India, IndusInd Bank, Yes Bank, Kotak Mahindra Bank, Canara Bank, and Bandhan Bank.

Mobile payments have also reported a surge. With 88.54 billion transactions, mobile payment volumes soared 41 per cent year-on-year, the report stated. "Credit card transactions grew by 36 per cent, prepaid cards by 35 per cent, and electronic toll collections (FASTag) by 12 per cent, with 103.1 million tags issued," the report revealed.

"The next financial year is set to witness even more UPI transactions. With its ongoing growth, rising popularity in smaller towns, and the introduction of new advanced features, we can expect the numbers to climb significantly. Support from the government, innovations in fintech, and increasing trust in digital payments will only help to speed up this trend. If things keep moving in this direction, UPI could break its own records, solidifying its position as a major player in India's digital economy," said Mohan K, founder, TechFini.

The report talks about key spending trends. Grocery stores, restaurants, pharmacies, and government services accounted for 68 per cent of transaction volume and 53 per cent of total transaction value in physical stores.

"UPI's dominance in India's digital payments ecosystem continues to soar, with transactions hitting a historic monthly high of ₹24.77 lakh crore, as per NPCI data. This milestone reinforces UPI's pivotal role in India's cashless revolution, setting a global benchmark for real-time payments. We've observed UPI's widespread adoption, especially in everyday micro-transactions, reflected in the 50% surge in P2M (person-to-merchant) transactions. Its simplicity and accessibility are transforming how India pays, even at the grassroots level," said Shikhar Aggarwal, Chairman, BLS E-Services.

Meanwhile, e-commerce, gaming, utilities, and financial services dominated the online payment landscape, comprising 81 per cent of digital transactions and 74 per cent of the total transaction value. Kerala, Maharashtra, Tamil Nadu, Karnataka, Delhi, Telangana, Uttar Pradesh, Gujarat, Jharkhand, and West Bengal emerged as the leading states in digital payment adoption, the report added.

"India's digital payments ecosystem is evolving at an unprecedented pace, driven by UPI's widespread adoption, the expansion of POS infrastructure, and the growing preference for mobile transactions. The rapid rise of SoftPOS – a technology which allows merchants to accept card payments directly on their phone or devices -- is redefining how businesses accept payments, making digital transactions more accessible than ever," said Ramesh Narasimhan, CEO of Worldline India.

"The uptick in UPI transactions is here to stay, and I won't be surprised if it reaches 25 billion transactions a month by next year. That being said, there is an anomaly here called 'currency demand paradox'. With digital transactions going up, ideally, the cash circulation should go down. But in India, both are going up. Despite this, the UPI is here to stay," said Worldline Senior VP Rongala.