Payments via mobile phones clocked 41 pc jump in July-Dec 2024

IANS April 11, 2025 179 views

India's digital payments ecosystem experienced a dramatic transformation in the second half of 2024, with mobile phone payments surging by an impressive 41%. The Unified Payments Interface (UPI) played a crucial role in driving this growth, with person-to-person and person-to-merchant transactions showing substantial increases. Private sector banks led the expansion of payment infrastructure, deploying Point of Sale terminals and supporting the rapid adoption of digital transaction methods. This trend highlights India's accelerating digital financial revolution and increasing technological integration in everyday financial activities.

"Digital payments infrastructure is transforming India's financial landscape" - Worldline India Report
New Delhi, April 11: Payments through mobile phones in India recorded a 41 per cent jump in transaction volume to 88.54 billion and a 30 per cent rise in value to Rs 197.69 lakh crore in the second half of 2024.

Key Points

1

UPI transactions grow 30% in person-to-person payments

2

Mobile payments volume jumps 41% in 6 months

3

Credit card usage surges 36% in digital transactions

India's digital payments ecosystem witnessed a significant surge in the second half of 2024, driven by Unified Payments Interface (UPI), mobile payments and cards, according to Worldline India's Digital Payments Report 2H 2024.

This was possible due to the robust growth in digital payments infrastructure. The UPI QR (Quick Response) codes through which users conduct their digital transactions using their mobile phones touched 63.34 crore at the end of December 2024, while PoS terminals increased by 23 per cent to 10 million during this period, the report states.

UPI saw strong growth in both person-to-person (P2P) and person-to-merchant (P2M) payments. P2P transactions increased by 30 per cent, rising from 27.04 billion in the second half of 2023 to 35.21 billion in the same period of 2024. The total value of these transactions also grew 26 per cent, reaching Rs 93.84 lakh crore.

P2M transactions grew even faster, with volume rising by 50 per cent to 58.03 billion and the total value increasing by 43 per cent to Rs 36.35 lakh crore.

Card payments in the second half of 2024 grew by 11 per cent to 4.1 billion transactions, mainly driven by a 36 per cent jump in credit card usage, which reached 2.42 billion transactions.

However, debit card transactions dropped by 29 per cent to 0.82 billion, while prepaid card transactions rose by 11 per cent to 0.86 billion.

The total value of card transactions increased by 8 per cent to Rs 13.64 lakh crore, with credit cards contributing Rs 10.76 lakh crore, a 14 per cent rise from the same period in 2023.

Electronic Toll Collection (ETC) saw robust growth, with 103.1 million tags issued by December 2024 -- a 26 per cent increase from the previous year. Transaction volumes grew 9 per cent to 2.05 billion, while transaction value increased 12 per cent to Rs 35,637 crore.

India's payment acceptance infrastructure expanded rapidly, with PoS terminals increasing 23 per cent to 10 million and UPI QR codes growing 126 per cent to 633.44 million. Private sector banks led PoS deployments with an 82.2 per cent market share.

Reader Comments

R
Rahul K.
This is amazing progress! I remember just 5 years ago we were still carrying cash everywhere. Now I can pay for chai at roadside stalls with my phone. Digital India is working! 🇮🇳
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Priya M.
While the growth is impressive, I worry about digital exclusion. My parents in a small town still struggle with UPI. We need better digital literacy programs alongside this infrastructure growth.
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Amit S.
The credit card usage jump is scary though. People are spending beyond their means. UPI is great but these credit numbers could lead to a debt crisis if not checked.
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Sunita R.
So convenient to pay with phone now! Even my vegetable vendor has QR code. No more worrying about change or dirty notes. Only wish transaction failures would reduce - sometimes payments get stuck.
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Vikram J.
The 126% growth in UPI QR codes is mind-blowing! Shows how quickly merchants are adapting. Next challenge - making this work seamlessly for international travelers too.
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Neha P.
Love paying with UPI but the 30% jump in P2P transactions worries me - are we becoming too transactional even with friends? Sometimes cash gifts felt more personal than phone transfers. Just a thought!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Mobile Payments UPI Digital Finance India Fintech Worldline Report Digital Transactions
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