In a revelatory update as of December 20, 2023, Mumbai, UPI Transactions Skyrocket by 118% at Retail Stores in 2023, PayNearby’s recent report sheds light on the phenomenal growth in Unified Payments Interface (UPI) transactions, marking a significant shift beyond tier-II regions. Let’s delve into the details of this transformative trend.
UPI Transactions Soar in Semi-Urban and Rural Retail Stores
PayNearby’s comprehensive report reveals a staggering surge of 118% in UPI transactions at semi-urban and rural retail stores, both in volume and value terms. This surge of 106% in the value of transactions underscores the expanding reach and adoption of UPI, breaking geographical barriers.
Mobile Point-of-Sale (mPOS) Acceptance Witnesses Notable Growth
The data report, aptly titled ‘Retail-O-Nomics,’ unveils another compelling trend—the growth of Mobile Point-of-Sale (mPOS) acceptance. With a 5% increase in value, it highlights the increasing embrace of cutting-edge technology among small merchants, signaling a tech-forward approach in retail transactions.
Cash Collections See a Remarkable 65% Upturn
The report further spotlights a substantial 65% increase in cash collections at retail counters. This surge reflects a heightened demand for credit and financial solutions, with a noteworthy monthly collection averaging ₹1,700 crore. This surge is echoed in the robust 25% increase in EMI collections across Non-Banking Financial Companies (NBFCs), Microfinance Institutions (MFIs), and small finance banks.
Diversified Loan Categories Experience Rapid Growth
Business, personal, and gold loans witnessed rapid traction, exceeding 10 lakh disbursements during the year. Of particular note is the fact that 21% of applicants were new to credit (NTC), with an average age range of 28-30 years.
EMI Collections Point to Growing Financial Awareness
The uptick in EMI collections signifies a rising awareness and interest in credit and financial offerings at the grassroots level. Additionally, positive growth in subscriptions for Over-The-Top (OTT) services, online education, and online gaming underlines a latent demand for digital services, indicating a growing affinity towards digital products in Bharat.
Digital Retailers and Transactions See a Significant Rise
The report notes a 9% increase in new registered digital retailers, resulting in a 10% rise in transactions both in terms of volume and value. These transactions span a wide array of services, including utility payments, cash collection, credit, insurance, and assisted commerce, among others.
Financial Inclusion Through New Account Openings
Retail counters opened a substantial 1.75 lakh new current and savings accounts, experiencing a remarkable 202% growth in account balances compared to the previous year. Furthermore, insurance policy purchases and premium collections rose significantly by 150% in transaction volume and 140% in new customer adoption.
Micro ATM and AePS Cash Withdrawals Experience Notable Growth
Micro ATM and Aadhaar-enabled Payment System (AePS) cash withdrawals saw a 17% increase in terms of the value of purchases. Although the transaction volume decreased, the average cash withdrawal per transaction witnessed a slight growth from ₹2,595 in 2022 to ₹2,624 in 2023.
Intriguingly, AePS withdrawals consistently surged by 30-40% during Direct Benefit Transfer (DBT) releases, notably during PM Kisan Yojana credits, compared to the rest of the year.
In conclusion, PayNearby’s ‘Retail-O-Nomics’ report paints a vivid picture of the evolving financial landscape, with UPI transactions leading the charge in reshaping the retail sector. The data underscores the need for scalable, affordable credit solutions to meet the demands of SMEs’ working capital and individual lifestyle upgrades.
