Credit and finance for MSMEs: The peer-to-merchant (P2M) UPI transactions recorded 110 per cent growth in May 2023 to 536.9 crore from 254.6 crore in May 2022, showed the latest UPI data from the National Payments Corporation of India (NPCI). The value of transactions also increased by 60.5 per cent from Rs 2.14 lakh crore in May last year to Rs 3.44 lakh crore in May this year. The total UPI volume stood at 941 crore involving Rs 14.89 lakh crore in May 2023, of which peer-to-peer (P2P) transactions were 404.5 crore amounting to Rs 11.45 lakh crore.
P2M transactions had a 57.03 per cent share in total UPI volume in May compared to the 42.97 per cent share of P2P transactions. However, P2M transactions by value were limited to 23.11 per cent share only compared to 76.89 per cent share of P2P transactions in the overall transaction value in May this year.
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In a month-on-month comparison, P2M transactions in April stood at 502.9 crore amounting to Rs 3.21 lakh crore. P2M transactions had a 56.53 per cent share in the total UPI volume of 889.8 crore transactions in April while P2P transactions had a 43.47 per cent share with the remaining 386.8 crore transactions. In terms of value, P2M transactions had a 22.8 per cent share vis-a-vis 77.18 per cent share of P2P transactions in the total UPI transaction value of Rs 14.07 lakh crore in April.
Importantly, P2M UPI transactions had surpassed P2P UPI transactions in volume in the second half of 2022, indicating the deep entrenchments of UPI P2M transactions, a report by payment services company Worldline had noted in April this year.
Also read: Rapid explosion of digital merchant payments (P2M) to disrupt payments landscape: Report
The UPI P2M share in total UPI transactions gradually scaled up from 40 per cent at the beginning of the year to 50 per cent in August before moving up to 53 per cent in October and ending the year at 54 per cent while UPI P2P transactions share declined to 46 per cent in December from 60 per cent in January last year.
The P2M transaction count is expected to further go north with NPCI partnering with various payment aggregators in March this year to enable merchant transactions through RuPay credit cards on UPI. Moreover, the Reserve Bank of India (RBI) in April this year had proposed pre-approved bank credit on UPI which is likely to benefit merchants and small businesses.
