The Unified Payments Interface (UPI) channel grew the fastest among all modes of retail digital payments in October, rising 149% month-on-month (m-o-m) in terms of the aggregate volume of transactions to 76.77 million and 33% in value terms to Rs 7,027.87 crore, representative data released by the Reserve Bank of India (RBI) showed. This brings the average ticket size of a UPI transaction to Rs 915, lower than the corresponding figure of Rs 1,719 for September. This is the first time the average value of a UPI transaction has slipped below Rs 1,000, suggesting that the channel is now being used to make payments with relatively smaller ticket sizes. UPI volumes have risen steeply in the last few months as more e-commerce players, such as Uber, joined the platform. Among other modes of retail payments, wallets and other prepaid payment instruments (PPIs) issued by eight non-banks clocked Rs 3,269 crore, up 18.5% from September, on 96.25 million transactions, up 10% from the previous month.
Based on this, the average ticket size of a wallet transaction works out to about Rs 340, up from Rs 315 in September. The average value of a UPI transaction is typically higher than that of a wallet transaction because use of the former channel has so far been limited to peer-to-peer payments, while wallets are more commonly used to make small-value payments to merchants. Transactions made through debit and credit cards at point-of-sale (PoS) terminals grew 6.4% m-o-m in volume terms to 255.7 million. The aggregate value of card transactions rose nearly 11% from the previous month to Rs 53,052 crore.
This data is based on card transactions sourced from four banks and the final figure for the entire system is likely to be much higher. The value of transactions made through Immediate Payment System (IMPS) grew 4.6% m-o-m to Rs 75,042 crore, while the volume grew 6.4% to 88.12 million. The Unstructured Supplementary Service Data (USSD) channel was the only one to see a slip, with volumes falling 10% to 0.18 million and the value of transactions dropping 7.5% from the month-ago period to Rs 29.93 crore.