Also, the most frequently visited In-Store merchant categories were grocery stores, restaurants, service stations, clothing stores, government services, pharmacies and hospitals which accounted for around 65% in terms of volume and nearly 50% of the total transaction value during July-December 2023 noted the report.
The most popular categories for UPI person-to-merchant (P2M) transactions reveal why average transaction sizes are decreasing while overall volumes are rising. These categories typically involve smaller purchases but happen very frequently. Here’s the breakdown of the top 10 MCCs (Merchant Category Codes) for UPI P2M transactions:
-
Groceries & Supermarkets -
Eating Places & Restaurants -
Telecommunication Services (phone bills) -
Fast Food Restaurants -
Department Stores -
Service Stations (gas stations) -
Digital Goods: Games (in-app purchases) -
Bakeries -
Drug Stores & Pharmacies -
Utility Bill Payments (electricity, gas, water)
This list reflects a shift towards using UPI for everyday necessities and smaller bills, contributing to the high transaction volume and lower average ticket size.
Mobile payments, which are transactions done using mobile phone apps, have seen solid growth. A significant number of these transactions are UPI-based but could be a whole host of payments using bank accounts etc.
The average amount spent per mobile payment transaction has decreased slightly. The average ticket size (ATS) in H2 2023 was Rs 2419.60, a 5% reduction compared to H2 2023. This shows that people are using mobile payments more often, for a wider variety of purchases. This trend suggests that mobile payments are becoming a reliable and preferred way to pay in India.
First Published: Apr 04 2024 | 9:54 AM IST