P2M transactions see significant growth in the second half of 2023, with PhonePe and GPay dominating the UPI market.

UPI has become the preferred payment method, surpassing all other payment options. In the second half of 2023, transaction volume surged by 56%, reaching 65.77 billion from 42.09 billion in H2 2022. During the same period, the value of transactions increased by 44% from Rs 69.36 trillion to Rs 99.68 trillion.

According to the latest Worldline Digital Payments report, the average ticket size (ATS) has reduced by 8% from Rs 1648 in H2 2022 to Rs 1515 in H2 2023. This decrease in ATS suggests a deeper embedding of UPI, which is being used for smaller or micro-transactions. The dip is primarily driven by the growth in person-to-merchant (P2M) transactions, as compared to person-to-person (P2P) transactions.