Worldline India Digital Payments Report H1 2023 - Key highlights

16 / 11 / 2023

The Worldline India Digital Payments Report for H1 2023 presents a comprehensive analysis of notable trends and shifts within the digital payments landscape in India from January to June 2023.

2 min.

Payments Strategy
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The report provides some key insights such as the frequently visited In-Store merchant categories and highest online transaction categories. The report also deep dives into various payment instruments to understand the growth of the digital payments ecosystem in India.

Have you read the report yet? If you haven’t, here are some of the report’s highlights that can tell you about the scenario of digital payments in India for H1 2023.

Worldline data trends

We analyzed transactions available in public databases as well as the transactions processed by us in H1 2023 (January – June) and derived some unique insights.

In H1 2023, frequently visited In-Store merchant categories such as grocery stores, restaurants, service stations, clothing stores, government services, pharmacies and hospitals accounted for around 65% in terms of volume and nearly 50% of the total transaction value.

Top 10 states and UT with the highest number of transactions at physical touch points in 2022 for Worldline India: Maharashtra, Kerala, Tamil Nadu, Karnataka, Delhi, Telangana, Uttar Pradesh, Gujarat, Andhra Pradesh and West Bengal.

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The Dominance of UPI

The report highlights the continued dominance of UPI as the preferred mode of digital payment. UPI has become the backbone of digital transactions in India, with a significant market share. Its user-friendly interface and interoperability across various apps make it the go-to choice for millions of Indians.

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UPI transaction volume has experienced a major upswing increasing from 4.6 billion transactions in January 2022 to 9.3 billion in June 2023. Correspondingly, the transaction value has exhibited a parallel upward trajectory. It increased from INR 8.3 trillion in January 2022 to nearly doubling to an impressive 14.7 trillion in June 2023.

Here’s what Ramesh Narasimhan, Chief Executive Officer – India, Worldline commented: “Every passing month serves as a testament to the rapid adoption of digital payments. Looking back at the first half of 2023, I find myself even more optimistic about the payment trends unfolding in India; the impressive performance of UPI, the surge in credit card usage, the jump in mobile payments volume, and the uptick in small ticket size of P2M transactions.

All this indicates that broad swathes of the country, rural and urban, are embracing digital payments. The allure of digital payments beckons both consumers and merchants alike, evolving it into an indispensable facet. As the payments landscape of India continues to grow, we at Worldline are enabling secure, hassle-free, and timely payments to suit our customers’ evolving needs”

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Payments Acceptance Infrastructure

Payments acceptance infrastructure channels saw a surge between January 2022 and June 2023. PoS terminals grew by 44% to 8.09 million while BQRs grew by 21% to 5.69. The standout is UPI QRs which grew by 79% (already on a large base) to 272 million. The growth in PoS terminals has also been helped by the RBI’s PIDF scheme while UPI QR growth has been driven by the private companies dominating UPI acceptance. This growth in UPI QRs is also reflected in the growth in UPI transactions as well as how it has had an impact on other forms of payment.

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Credit, Debit, and Prepaid Cards

The total number of cards in circulation has shown a modest growth over the last 18 months. In June 2023, the total number of cards was 1376 billion, a 9% YoY increase. In June 2023, the number of credit cards was 88.68 million, 975.8 million debit cards and 312.1 prepaid cards; this corresponds to a YoY growth of 13%, 6% and 18% respectively. The top 5 issuers of credit cards are HDFC, SBI, ICICI, Axis and Kotak respectively and the top 5 issuers of debit cards are SBI, Bank of Baroda, Canara Bank, HDFC and Bank of India.

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Net Banking

While Net Banking (NB) is traditionally thought of to be where one pays for their goods and services, it also includes payments made by corporates for taxes among many other things explaining the very high numbers. In H1’23, the volume of NB transactions was 2.13 billion, a 1.4% increase from H1’22 (2.10 billion). In terms of value, NB transactions in H1’23 amounted to INR 468.8 trillion compared to INR 442.4 trillion, a 5.9% increase.

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Electronic Toll Collection

Electronic Toll Collection (ETC) has really changed how we pay for tolls on the country’s roads and now increasingly at parking plazas among other use cases. Drivers across the country can testify how easier it has made driving on roads and this steady adoption is reflected in the numbers. Given that ETC tags are a mandate, this number will continue to grow steadily and as new use cases come online, that steady increase may take on a steeper incline.

As the country continues on its digital journey, businesses and policymakers must adapt to this evolving landscape. The report serves as a valuable resource for understanding the current trends and provides a roadmap for the future of digital payments in India. It's clear that the digital payment revolution is here to stay, and its impact on the Indian economy is only set to grow in the coming years.

Are you interested in reading the full Worldline India Digital Payments Report for H1 2023?
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Tags: one-country:india

Worldline India Editorial Team

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