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UPI Transactions Soar by 118 Per Cent at Retail Stores in 2023: PayNearby Report

PayNearby releases detailed analysis on ‘assisted digital transactions’ FY23, in its third Pan-India report titled, Retail-O-Nomics

UPI Transactions Soar by 118 Per Cent at Retail Stores in 2023: PayNearby Report

Outlook Start-Up Desk

POSTED ON December 21, 2023 10:51 AM

Unified Payments Interface (UPI) transactions saw a 118 per cent and 106 per cent increase in volume and value respectively at semi-urban and rural stores, representing the growing adoption of UPI beyond Tier II regions in the country, a report by PayNearby revealed.  

The report titled Retail-O-Nomics indicated that mPOS (Mobile Point of Sale) acceptance too witnessed a growth of 5 per cent in value, emphasising the increasing adoption of cutting-edge technology among small merchants.  

Insurance policy purchases and premium collections surged by 150 per cent in transaction volume and 140 per cent in new customer adoption, it added.  

The report has been prepared based on transactions conducted across a million-plus PayNearby retail touchpoints, consisting of Kirana stores, mobile recharge stores, medical shops, customer service points (CSPs), travel agents, etc. throughout the country. The findings compare business data from January to November 2023 with the same period in the year 2022.  

As per the report, the nationwide newly registered retailer count increased by 9 per cent. Overall, transactions grew by 10 per cent both in volume and value. The transactions include not only banking and financial services, but also digital services like utility payment, cash collection, credit, insurance, assisted commerce, and more.  

In 2023, Micro ATM and AePS cash withdrawals, pivotal for rural and semi-urban digital counters (retail stores), fell short of expected growth. However, MATM device demand remained robust, marking a 17 per cent surge in purchases compared to last year. Although transaction volume decreased, the average cash withdrawal per transaction grew slightly from Rs 2595 in 2022 to Rs 2624 in 2023. Notably, AePS withdrawals surged consistently by 30-40 per cent during DBT releases, notably during PM Kisan Yojana credits, as compared with the rest of the year, it added. 
 
The key highlights of the report: 

  • Cash collection at retail counters surges by 65 per cent, indicating a rising demand for credit and financial solutions nationwide. 
  • Average monthly collection reaches Rs 1,700 crores, with a 25 per cent increase in EMI collections for NBFCs, MFIs, and Small Finance Banks. 
  • Positive growth in subscriptions for OTTs, online education, and online gaming reveals Bharat's growing affinity towards digital products. 
  • Business, personal, and gold loans surpass a seven-figure mark in disbursement, with 21 per cent of applicants being new to credit (NTC). 
  • Assisted e-commerce, particularly in the branded shop category, sees substantial traction with an average ticket size of per cent 3,184. 
  • FY 2023 witnesses a surge in re-banking at retail counters, opening 175,000 new current and savings accounts with a 202 per cent growth in account balances. 
  • Bill payments spike by 74 per cent in value, 39 per cent in volume; mobile recharge grows by 3 per cent; assisted Income Tax Return (ITR) services rise by 4 per cent. 
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