Unified Payments Interface (UPI) transactions in India grew by 52% year-on-year, reaching 78.97 billion in the first half of 2024.

A fresh Worldline report reveals the growing popularity of digital payments in India and underscores UPI’s dominance in its national digital payment ecosystem, with a 52% surge over the first six months of the year.

According to the study, UPI transaction volume soared from 51.9 billion in the first half of 2023 to 78.97 billion in the same period in 2024. The value of these transactions surged by 40%, from INR 83.16 trillion to INR 116.63 trillion.

Growing UPI’s adoption has led to the payment method facilitating numerous financial activities, from microtransactions to larger purchases. UPI is widely used at physical retail stores, supermarkets, restaurants, and small shops and is accepted by most e-commerce platforms and online retailers in India. The payment method is also popular for P2P transfers, utility and subscription payments, healthcare and education payments, and is increasingly integrated into public transportation systems.

In POS retail, the most frequented merchant categories where UPI was used in H1 2024 included grocery stores, restaurants, and service stations. They jointly accounted for 68% of physical checkpoint transaction volume and nearly 53% of total transaction value. Meanwhile, online payments for e-commerce purchases, gaming, and financial services made up 81% of the transaction volume.

In the given period, the average ticket size (ATS) of UPI transactions decreased by 8% year-on-year, from INR 1,603 in the first half of 2023 to INR 1,478 in 2024. This decline, particularly vivid in person-to-merchant transactions, indicates that UPI is becoming increasingly popular for small, everyday purchases. On the contrary, person-to-person (P2P) transactions experienced a slight increase in ATS, which shows that people trust UPI service for larger personal transactions as well and use payment methods for a growing variety of purposes.

In addition to the growing public trust and utility, digital payments in India have grown due to the significant expansion of payment infrastructure. The report shows that the number of point-of-sale (POS) terminals deployed in the country has now surpassed 8.96 million, facilitating seamless transactions for both consumers and merchants.

Besides, UPI is no longer limited to domestic use cases but is also actively expanding abroad. The payment solution has been available globally via open APIs since 2022. As of 2024, UPI is integrated with Singapore’s PayNow system, available at various merchant points in the UAE, and implemented through various partnerships in Nepal, Bhutan, Oman, Malaysia, France, Mauritius, the UK, Australia, and other countries. Several other countries, including Sri Lanka and Saudi Arabia, are in discussions for integrating UPI for cross-border payments and enhanced financial connectivity.