UPI transactions surged to 9.3 billion in June 2023, driven by P2M, says Worldline report

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₹45.52 trillion to ₹63.99, a 41% increase. The P2M transactions are experiencing rapid growth, with a 119% increase compared to a 41% rise in P2P transaction volume in H1 2023, the report said. The removal of transaction fees for merchants contributed to the growth in P2M transactions, the report added.

“Beyond low fees, merchants are also looking for security, timely payments among other things and UPI delivers here. The other fact is that with the dominance of P2M transactions, UPI is going to become even more entrenched with the population and growth will continue at this rapid pace and the P2M percentage, at current trends, will likely reach 75% of all UPI transactions by 2025," the report said. "The key driver for this growth has been the widespread acceptance of UPI for both personal and payment transactions from the user/buyer standpoint, as well as high acceptance by merchants.

Additionally, there has been greater penetration of UPI in rural India," the report added. The report noted that three UPI apps -- PhonePe, Google Pay, and Paytm-- accounted for 95.68% of all transactions in terms of transaction volume, in June 2023, compared to 94.55% a year before. In terms of transaction value, the 3 accounted for 93.65% in June 2023 compared to 93.38% in June 2022.