UPI QR Transactions See 33% Rise At Retail Stores In Bharat: PayNearby Report

Showing that digital payments have found their place beyond the tier 2 regions of the country, a report has stated that there has been a 33 per cent increase in Unified Payments Interface (UPI) transactions at retail stores. In addition to this, the acceptance of mPOS services grew by 11 per cent among new retailers.

The ‘Retail-O-Nomics’ report by PayNearby, a branchless banking and digital network has highlighted an impressive 297 per cent in volume across credit products, including business loans, gold loans, personal loans, and revolving credit. The findings compare business data from January to November 2024 with the same period in the year 2023.

In 2024, Micro ATM and AePS (aadhaar enabled payment systems) 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 Rs 2,624 in 2023 to Rs 2,482 in 2024.

However, AePS withdrawals surged by 35-45 per cent during direct bank transfer (DBT) releases, particularly under schemes like PM Kisan Yojana, compared to the rest of the year.

“The report highlights significant growth across these verticals—whether it’s the increasing adoption of insurance services, the rise in e-commerce transactions, or the growing demand for credit solutions. This progress underscores the trust placed in last-mile retail counters as essential service hubs for individuals and businesses alike,” stated Anand Kumar Bajaj, Founder, Managing Director (MD) and Chief Executive Officer (CEO), PayNearby.

The nationwide count of newly registered retailers grew by 5 per cent, reflecting the retail community’s continued enthusiasm to support India’s growth by enabling assisted financial and digital transactions at neighbourhood stores.

The assisted ecommerce segment, meta-commerce, witnessed remarkable growth in both the branded Shop and PayNearby Mall (ecommerce) categories. The Brand Shop category saw a 71 per cent increase in transactions and a 41 per cent rise in value, while the ecommerce category recorded an impressive 141 per cent growth in transaction volume and a 95 per cent rise in value.

The Brand Shop category gained strong traction, featuring top brands in consumer electronics, mobile accessories, and kitchen appliances. Popular categories in the broader ecommerce portfolio included clothing, groceries, toys, and personal healthcare products. The average ticket size for the Branded Shop category stood at Rs 2,680, while the rest of the ecommerce portfolio averaged Rs 1,288.

The report added that insurance policy purchases and premium collections saw a 127 per cent increase in transaction volume and a 96 per cent growth in new customer adoption. Bill payments service at local stores witnessed an increase of 21 per cent in value and 34 per cent in volume.

On the other hand, mobile recharge, assisted Income Tax Return (ITR) services and travel bookings fell short of expected growth. Notably, 42 per cent of banking transactions occurred from 3.00 pm to 9.00 pm, highlighting retail outlets' crucial role in meeting banking and digital needs, especially within the PayNearby network.