Digital Payments in India: UPI leads, credit card spending rises as debit cards lag

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New Delhi: India’s digital payments story continues to report positive growth with UPI leading the payment instruments in this race, according to the India Digital Payments Report for the second half of 2023 by Worldline India. During the July-December half of 2023, point-of-sales (POS) terminals crossed the 85 million mark with 10 banks making up for 94 per cent of such transactions.

UPI dominates

The Unified Payments Interface (UPI) continued to dominate the digital payments field in India while also expanding its footprint abroad.
Credit cards also reported a steady rise as the preferred payments channel for high-value transactions on PoS and web.
The ticket size of debit card transactions declined as UPI gained popularity.
FASTag transactions are witnessing constant growth, a trend that is likely to continue.

How payment channels performed in July-December 2023

Here is how different payment channels have performed during H2 2023:

Payment channel
Volume (in million)
Value (in Rs billion)




Credit cards

Debit Cards

Prepaid Cards

Mobile App

Net Banking

What is the average ticket size for different digital payment channels?

The highest average ticket size for digital transactions was cornered by net banking worth Rs 2,23,891, followed by credit cards at Rs 5,276.
The average ticket size for UPI person-to-person transactions stood at Rs 2,744 while payment to merchants averaged Rs 656.
Debit card transactions recorded an average ticket size of Rs 2,642.
Overall UPI transactions averaged Rs 1,515.
The lowest ticket size for digital transactions was recorded by prepaid cars at Rs 310.

How many credit cards issued in July-December 2023?

Out of 1.384 billion cars issued in India in December 2023:

97.9 were credit cards
960.8 million were debit cards
325 million were prepaid cards

While credit card issuance grew 21 per cent on-year, and prepaid card issuance jumped 13 per cent, debit card issuance grew just 2 per cent.

Debit card transactions in H2 2023 declined 34 per cent to 1.15 billion while credit card transactions jumped 21 per cent during the same period to 1.78 million.

Value of mobile-based transactions in July-December 2023

Mobile app payments rose 31 per cent year-on-year in the second half of 2023 to RS 152.33 lakh crore from Rs 116 lakh crore a year ago. Transaction volumes jumped 38 per cent on-year to 62.95 billion from 45.58 billion a year ago. Within the calendar year 2023, mobile transaction value jumped 33 per cent while there was a 34 per cent surge in volumes.

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