Unified Payments Interface (UPI) transactions at retail stores have witnessed a spike of 33%, underscoring the growing adoption of digital payments beyond Tier II regions in the country, a recent report has said.
PayNearby, in its latest data report titled ‘Retail-O-Nomics’ highlighted that the acceptance of mPOS services grew by 11% among new retailers, reflecting an increasing preference for advanced payment technologies.
The report highlights an impressive 297% in volume across credit products, including business loans, gold loans, personal loans, andrevolving credit. This significant uptick reflects a growing awareness and demand for credit solutions at the grassroots level.
Further, the report said the Insurance policy purchases and premium collections saw a 127% increase in transaction volume and a 96% growth in new customer adoption.
This highlights the pivotal role digital retail stores play in overcoming the challenges of insurance penetration across Bharat, it said.
In 2024, Micro ATM and AePS cash withdrawals, crucial for rural and semi-urban digital counters, fell short of expected growth. Both transaction volumes and the average cash withdrawal per transaction saw slight declines, with the latter dropping from ₹2,624 in 2023 to ₹2,482 in 2024.
However, AePS (Aadhaar Enabled Payment Systems) withdrawals surged by 35-45% during DBT releases, particularly under schemes like PM Kisan Yojana, compared to the rest of the year.
AePS has been instrumental in addressing infrastructure gaps in remote and hilly regions, enabling essential banking services through local shopkeepers and trusted individuals. The report highlights significant growth in cash withdrawal transactions in Northeast India, with Mizoram, Meghalaya, Nagaland, and Assam leading the way in digital financial inclusion.
Jammu and Kashmir recorded impressive growth of 58% in value and 74% in volume. This preference in rural India underscores the vital role of neighbourhood retail stores in expanding access and transforming everyday banking at the last mile.
The assisted e-commerce segment, meta-commerce, witnessed remarkable growth in both the Branded Shop and PayNearby Mall (e-commerce) categories. The Brand Shop category saw a 71% increase in transactions and a 41% rise in value, while the e-commerce category recorded an impressive 141% growth in transaction volume and a 95% rise in value.