UPI transaction share overtakes cards in merchant payments: Razorpay

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Published: October 15, 2019 2:29:11 AM

In August 2019, the share of UPI in merchant payment volumes on Razorpay stood at 40.78%, while that of cards was higher at 44.1%.

 Razorpay, UPI payments, Unified Payments Interface, Razorpay CEO, PhonePe, Bharat Interface for Money, digital payments, value of transactions, cards netbanking india, UPI platform, Bharat Interface for Money, BHIM app, Google Pay That UPI has been taking some share away from more traditional modes of digital payments, cards and netbanking among them, has been evident for a while now.

In a first, the share of Unified Payments Interface (UPI) in person-to-merchant (P2M) digital transaction volumes overtook that of cards in September 2019, according to a blog post by payments service provider Razorpay. While UPI accounted for 44.67% of all merchant transactions made through Razorpay, cards contributed 42.56% of merchant digital payments during the month under review.

In August 2019, the share of UPI in merchant payment volumes on Razorpay stood at 40.78%, while that of cards was higher at 44.1%.

Between the March 2019 quarter and the June 2019 quarter, UPI usage shot up 71%. Harshil Mathur, co-founder and chief executive officer (CEO), Razorpay, said in the blog post, “We’ve been observing UPI transactions since 2017, and we always saw that cards (debit & credit) took the bigger chunk in the method-wise split, while UPI always stood right behind cards. But, the tables turned in September.”

The ease of not having to carry cards anymore might be a factor behind the rising popularity of UPI, Mathur observed.

Google Pay continues to be the most preferred UPI app with a contribution of 61.33% to all transactions. PhonePe came in second with a 24.2% contribution to UPI merchant transactions. Google Pay saw adoption growing 40.77% between August and September, while Paytm saw UPI transactions increase 37.8% month-on-month (m-o-m).

Interestingly, the Bharat Interface for Money (BHIM) app also saw usage growing over 31% between August and September. The withdrawal of cash backs and other incentives from BHIM last year had led to the app losing a significant amount of share in the UPI universe.

That UPI has been taking some share away from more traditional modes of digital payments, cards and netbanking among them, has been evident for a while now. The value of transactions on the UPI platform recorded this January — `1.09 lakh crore — overtook those made by debit and credit cards at `1.05 lakh crore.

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