UPI transactions are becoming smaller in value even as the volume of transactions are on the rise.

Worldline, a global player in the payments tech space, said that the average ticket size of UPI transactions declined by 8 per cent from Rs 1,648 in the second half of 2022 to Rs 1,515 in the second half of 2023.

“It is clear that the reduction in overall ATS (average ticket size) has been driven by P2M (people to merchant) transactions. The ATS of P2M transactions fell from Rs 720 to Rs 656, a 9 per cent reduction,” Worldline said in a report.

On the volume side, P2P (person to person) transactions grew from 20.25 billion in H2 2022 to 27.04 billion in H2 2023, a 34 per cent increase. P2M transactions volume grew from 21.84 billion to 38.73 billion, a 77 per cent increase.

Overall UPI transactions grew by 56 per cent year on year. In December 2023, the 3 UPI apps — PhonePe, Google Pay, Paytm — accounted for 95.4 per cent of all transactions compared with 94.8 per cent a year before.