UPI Transactions: The pace of Unified Payments Interface (UPI) in India has taken digital payments to new heights. However, this is not uniform across the country. According to a recent report, adjusting the November data for population shows that among larger states, Maharashtra is almost seven times ahead of Bihar in per capita UPI transactions. Telangana is six times more than Tripura. This disparity highlights the digital divide that exists in the country.
According to reports, UPI now handles more than 20 billion transactions a month. It accounts for 85 per cent of digital payments, but uptake in usage depends on income, urbanization and merchant acceptance. Keeping in mind the population, small and urban areas are ahead. Delhi tops the list with 23.9 transactions per capita monthly. This is followed by Goa (23.3), Telangana (22.6) and Chandigarh (22.5). Among big states, Maharashtra tops with 17.4 transactions per capita.
Telangana tops in terms of value
According to the report, states like Karnataka, Tamil Nadu and Kerala are much above the national average in using UPI. Jharkhand, Assam and West Bengal are below average. Telangana is at the forefront in terms of value. The value of monthly UPI transaction per person here is Rs 34,800. After this comes Goa (Rs 33,500) and Delhi (Rs 31,300).
Bihar and Tripura far behind
Tripura and Bihar have less than four per capita monthly transactions. Both the states are far behind in terms of value also. In Tripura this average is Rs 5,100. In Bihar it is around Rs 5,400. Meaning a resident of Delhi does six times more UPI transactions than a resident of Bihar or Tripura. Which shows the huge lack of person-to-merchant infrastructure in eastern and north-eastern India.
Also read: How to stop UPI AutoPay: Easy way to stop auto debit in Paytm, PhonePe and Google Pay
This is what the clear pattern looks like
Regional patterns are clear. The south-west corridor from Maharashtra to Telangana via Karnataka shows higher frequency and value. Which is a sign of a mature digital ecosystem. There is a mixed picture in the north-east. Tripura and Assam are behind. Arunachal Pradesh and Sikkim are relatively better off. Perhaps the reason may be reliance on digital as an alternative to cash in inaccessible areas.
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