Additionally, the most frequently visited in-store sales categories were grocery stores, restaurants, gas stations, clothing stores, government services, pharmacies, and hospitals, accounting for approximately 65% of total transactions in July. It accounted for almost 50%. -December 2023 paid attention to this report.
The most popular category of UPI person-to-merchant (P2M) transactions reveals why average transaction size is decreasing even as overall transaction volume is increasing. These categories usually include small purchases, but they occur quite frequently. Here is the breakdown of the top 10 MCCs (Merchant Category Codes) for UPI P2M transactions:
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This list reflects the trend of using UPI for everyday items and small bills, which is contributing to higher transaction volumes and lower average ticket sizes.
Mobile payments, which are transactions made using mobile phone apps, are experiencing strong growth. Although a significant portion of these transactions are UPI-based, there may be a number of payments made using bank accounts and the like.
The average amount spent per mobile payment transaction decreased slightly. The average ticket size (ATS) for H2 2023 was Rs 2419.60, down 5% compared to H2 2023. This shows that people are using mobile payments more frequently for a wider variety of purchases. This trend suggests that mobile payments are becoming a reliable and preferred payment method in India.
