UPI transactions soar by 118% in semi-urban, rural retail stores in 2023

The year 2023 witnessed a remarkable surge in United Payments Interface (UPI) transactions at retail stores in rural and semi-urban areas of India, reflecting a growing trend in the adoption of online payments in Tier-II cities.

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According to a comprehensive report titled 'Retail-O-Nomics' by fintech firm PayNearby, UPI transactions at these locations rose by an impressive 118 percent compared to the previous year, with a corresponding 106 percent increase in transaction value. The report, based on a survey of over a million shops conducted between January and November, sheds light on the evolving dynamics of digital payments in non-metro regions.

The report highlights a significant shift in consumer behavior, showcasing a preference for assisted digital methods for various financial and lifestyle needs. Beyond traditional banking and financial services, UPI transactions now encompass a broad spectrum of digital services, including utility payments, cash collection, credit, insurance, and assisted commerce. This shift signifies the integration of consumers in these regions into the formal economy through digital means.