Semi-urban and rural retail stores in India saw a spectacular 650 per cent increase in universal payments interface (UPI) transactions this year, a study revealed on Tuesday. According to a survey from branchless banking and digital network PayNearby, the value and volume of aided financial transactions across semi-urban and rural retail shops in the nation increased by 25 per cent and 14 per cent, respectively, in 2022.
While the demand for mPOS (mobile point-of-sale) and micro-ATMs increased by 25 per cent, the EMI collections for financial institutions and non-banking financial companies (NBFCs) sharply increased by over 200 per cent.
The average amount of cash withdrawal per transaction has, however, slightly decreased, falling from Rs 2,620 in 2021 to Rs 2,595 in 2022.
Speaking on the growth, Anand Kumar Bajaj, Founder, MD and CEO, PayNearby said, “Bharat is an aspirational nation, and the rising demand for green shoot services like microlending, OTT subscriptions, and aided commerce confirms our commitment to making these products and services conveniently accessible at a nearby retailer.”
The rise in UPI transactions reflects a change in consumer behaviour in these areas, with more people using supported digital methods for their banking and lifestyle needs and integrating into the formal economy, the report observes.
In addition, the report showed a remarkable increase of more than 200 per cent in the cash collection business (including EMIs) with a monthly average of Rs 1,400 crore, showing a rebound in demand for loans and other financing options from pre-pandemic levels.
“In the first t10 months of this year, we have serviced nearly Rs 70,000 crore in digital services, and the steady growth of the cash withdrawal business, along with the rapid adoption of some of these green shoot services, point to a steady recovery of our economy following the devastating effects of the Covid-19 pandemic,” Bajaj added.
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