Debit card transactions in H1 2023 (January to June) fell to 1.379 billion, marking a sharp 28% decrease from H1 2022.Credit card transactions at PoS terminals recorded a 30.5% growth white debit card transactions fell 11.9%.- The volume of
UPI transactions doubled from 4.6 billion transactions for this period in 2022.
The debit card transactions appear to have been impacted by the rise in Unified
In H1 2023 as compared to H1 2022, credit card transactions at point of sales (PoS) terminals amounted to ₹2.95 trillion (₹2,95,000 crore), showing robust growth of 30.5%, whereas debit card transactions were valued at ₹2.13 trillion(₹2,13,000 crore), marking an 11.9% decrease.
As stated, the growth of UPI is the main reason why debit card transactions have fallen as people now prefer to use their phones to pay rather than swipe a debit card for practically the same result.
However, payment through credit cards has a different result – one which gives the user a free grace period to pay or go for an instalment option. Plus, as mentioned before, credit card is the preferred mode for large ticket transactions.
UPI has maintained its supremacy as the leading payment channel in India, overshadowing all other available payment methods in 2023 again. The volume of UPI transactions witnessed a significant surge (more than 2X) from 4.6 billion transactions in January 2022 to 9.3 billion in June 2023.
Concurrently, the transaction's overall worth followed a similar upward trend, moving from ₹8.3 trillion (₹8,30,000 crore) in January 2022 to nearly doubling to ₹14.7 trillion (₹14,70,000 crore ) in June 2023. This growth can be attributed to the widespread acceptance of UPI for various personal and payment transactions, both from the user's perspective and that of merchants. Furthermore, UPI has made substantial inroads into rural India.
Comparing H1 2023 to H1 2022, the volume of UPI transactions has surged by an impressive 62%, increasing from 31.95 billion to 51.91 billion.
The first half of 2023 has seen payments through phone apps shifting gears further. A significant portion of these growing transactions were UPI-based, but they encompassed various payment methods using bank accounts and more. During this period, the number of mobile transactions amounted to 52.15 billion, a 55.4% increase compared to the 33.55 billion recorded in HI 2022.