UPI: P2M transactions jump 126% to new all-time high in October from year ago period | The Financial Express

UPI: P2M transactions jump 126% to new all-time high in October from year ago period

Credit and finance for MSMEs: The overall UPI volume in October stood at 7,305 million (730 crores) transactions with a 47 per cent share of P2M transactions.

UPI: P2M transactions jump 126% to new all-time high in October from year ago period
UPI P2M transactions jumped 88.4 per cent in value from Rs 1,50,044.24 crore to Rs 2,82,710.45 crore between October 2021 and last month.

Credit and finance for MSMEs: The peer-to-merchant (P2M) UPI transaction volume in October has increased by 126 per cent to reach a new all-time high of 3,868.76 million (386 crores) from 1,711.53 million (171 crores) in October 2021, according to the latest monthly UPI data from the National Payments Corporation of India (NPCI). The transactions also jumped 88.4 per cent in value from Rs 1,50,044.24 crore to Rs 2,82,710.45 crore between October 2021 and last month. 

The overall UPI volume in October stood at 7,305 million (730 crores) transactions with a 47 per cent share of P2M transactions and the majority nearly 53 per cent share of 3,436.66 million (343 crores) peer-to-peer (P2P) transactions. Likewise, in terms of overall UPI transaction value of Rs 12.11 lakh crore, P2P transactions amounting to Rs 9.28 lakh crore dominated with 76 per cent share in comparison to 23 per cent share of P2M transaction value.

Importantly, during Q2 in the current calendar year, UPI had emerged as the preferred payment mode for merchant transactions with a market share of 34 per cent in volume and 17 per cent in terms of value, a report by global payment gateway company Worldline’s India arm said in October. On the other hand, payments through credit and debit cards accounted for 8 per cent in volume and 14 per cent in value while prepaid payment instruments like mobile wallets and prepaid cards had only 2 per cent volume share and 1 per cent value share in merchant transactions. 

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According to the data platform Statista, India’s P2M market is expected to hit the Rs 84 lakh crore mark by FY25 from around Rs 18 lakh crore in FY19 with Paytm, PhonePe, Google Pay, etc., among prominent players. Paytm had last month reported a 63 per cent year-on-year (YoY) increase in merchant payment volumes (gross merchandise volume or GMV) for the quarter ended September 2022 to Rs 3.18 lakh crore from Rs 1.96 lakh crore in Q2 FY22.

PhonePe, on the other hand, had reported in September that it had enabled online payments for 80 lakh merchants in the last 18 months as a part of the Reserve Bank of India’s Payments Infrastructure Development Fund (PIDF) scheme. India’s overall digital payments market is projected to be worth more than Rs 7,000 lakh crore by 2025.

Also read: MSME Association CIMSME partners with two banks to vet their MSME loan applications

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First published on: 03-11-2022 at 13:14 IST