India’s digital payment landscape is transforming faster than ever, with Unified Payments Interface (UPI) driving the charge.

UPI recorded a staggering 52% jump in transaction volume in the first half of 2024 (1H 2024), reaching 78.97 billion transactions, up from 51.9 billion in the same period last year. Transaction values also rose sharply, climbing 40% to an impressive ₹116.63 lakh crore, according to the data collated by Worldline.

Their latest India Digital Payments Report shows UPI transactions are evolving, from micro-payments at grocery stores and service stations to larger transactions in government services and e-commerce.

UPI’s digital champions: Top apps

The world of UPI apps is highly competitive, but three giants continue to lead the charge with PhonePe at the very top, followed by Google Pay and Paytm. Together, these apps account for a massive 94.83% of the total UPI transaction volume.

Their dominance, while slightly reduced from last year’s 95.68%, remains unchallenged, with 92.21% of total transaction value still flowing through these platforms.

Also read:

RBI increases UPI 123Pay transaction limit to ₹10,000 and UPI Lite wallet limit to ₹5,000

The top remitter banks include State Bank of India, HDFC Bank, and Bank of Baroda, which together power billions of transactions each month. On the beneficiary side, YES Bank, SBI, and Axis Bank lead, ensuring smooth payments across the country.

Growing digital infrastructure

India’s payment infrastructure is rapidly expanding to support this surge in digital transactions. The number of point of sale (PoS) terminals grew 17% year-on-year, reaching 8.96 million by June 2024, making card payments smoother across urban and rural areas. Similarly, UPI Quick Response (QR) codes saw a 39% jump, with over 340 million codes now deployed.

Credit cards surge while debit cards see major drop 

Credit cards emerged as a key player in India’s payment landscape for 2024, with a 37% increase in transaction value, reaching ₹10.62 lakh crore. Transaction volumes also grew by 32%, underscoring a shift toward credit card usage for higher-value purchases.

In contrast, debit card usage saw a sharp decline, with a 33% drop in transactions, reflecting a shift in consumer behaviour towards digital alternatives like UPI and mobile wallets.

The report also noted a modest 5% growth in prepaid card usage, driven primarily by changes in reporting. Despite the decline in debit card transactions, card payments on PoS terminals grew 7%, reinforcing the ongoing relevance of cards in the payment ecosystem.