UPI transactions up by 33 pc at retail stores in semi-urban, rural areas
24 Dec 2024 6:52 PM IST
New Delhi: UPI transactions at retail stores have increased by 33 per cent in semi-urban and rural areas this year, reflecting the growing adoption of digital payments. Moreover, insurance policy purchases and premium collections also witnessed a 127 per cent jump in transaction volume and a 96 per cent growth in new customer adoption during the year, according to a report by branchless banking and digital network PayNearby.
The report, however, highlighted the role digital retail stores play in overcoming the challenges of insurance penetration across Bharat. The findings in the report is based on an analysis of real transaction data derived from over 10,00,000 small retailers (kirana stores, mobile recharge stores etc) offering financial and digital services spread across India in rural and semi-urban regions.
The findings compare business data from January to November 2024 with the same period in 2023. The report, Retail-O-Nomics, also stated that there has been an impressive 297 per cent volume rise across credit products, including business loans, gold loans, personal loans, and revolving credit in rural and semi-urban areas. “This significant uptick reflects a growing awareness and demand for credit solutions at the grassroots level,” the report said.
However, micro ATM and Aadhaar Enabled Payment Systems (AePS) cash withdrawals saw a decline in 2024. “Both transaction volumes and the average cash withdrawal per transaction saw a slight decline, with the latter dropping from Rs 2,624 in 2023 to Rs 2,482 in 2024,” the report added.
As per the data, AePS withdrawals surged by 35-45 per cent during DBT releases, particularly under schemes like PM Kisan Yojana, compared to the rest of the year. “Cash withdrawals in Jammu and Kashmir recorded an impressive growth of 58 per cent in value and 74 per cent in volume,” the report said.
“By equipping local retailers with tools to offer diverse services like insurance, e-commerce, and lending, we are empowering them to become key enablers of financial access and economic progress at the grassroots,” said Anand Kumar Bajaj, founder, MD & CEO, PayNearby, said.
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