Retail outlets saw an 84% increase in UPI QR code transactions
• Northeast India has seen an increase in AePS transactions, with Meghalaya leading the way in terms of transaction volume growth; • Retail establishments in J&K have also seen a 31% increase in MicroATM transactions.
• The two states with the highest increase in e-commerce transactions at retail establishments were Telangana and Uttar Pradesh.
In line with the larger goal of a prosperous Bharat, Jammu and Kashmir has become a “Viksit” Union Territory as a result of the substantial uptake of financial services in that region. The union territory’s successful implementation of the AePS (Aadhar-enabled Payment System) is another outcome of the government’s digitalization push.
AePS transactions at retail locations in Jammu & Kashmir increased by 89% in volume and by over 134% in value in FY24, according to a PayNearby study that shows a similar pattern. Similarly, the value and volume of MicroATM transactions at retail locations in the Union Territory increased by 31%.
The data also shows a significant movement in favour of digital payments, with retail store transactions using UPI QR codes rising by an astounding 84%.
The “Atmanirbhar Bharat Digital Empowerment” report, which was released today by PayNearby, the top digital network and branchless banking provider in India, highlights the increasing uptake of digital and assisted financial services at semi-urban and rural retail establishments like kirana stores, medicine stores, and mobile recharge shops.
According to the survey, the Northeastern states of India have experienced a notable surge in AePS transactions, exhibiting a comparable pattern. With a 1000% increase in AePS transaction value and a 712% increase in transaction volume, Meghalaya leads the list, demonstrating the area’s quick adoption of financial services. This is followed by Assam and Nagaland, both of which showed remarkable increases in the quantity and value of AePS transactions.
Mizoram and Meghalaya saw an increase in the volume and value of MicroATM transactions. While volume increased by 33% and 43% in these two states, transaction value increased by 55% and 43%, respectively.
Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, said, “Over the past few years, we have witnessed an extraordinary transformation in financial & digital services across Bharat, especially in Jammu & Kashmir and the Northeast states. This reflects the critical role of retail outlets in facilitating easy access to banking services, especially in areas where traditional bank branches may not be easily accessible. We are dedicated to empowering local retailers and ensuring that essential financial and digital services are accessible to everyone and everywhere.”
The report also emphasises how important it is for people to rely more and more on their local retail establishments to deliver basic financial services including credit, e-commerce, cash withdrawals, deposits, and insurance. Notably, Assam took the lead in terms of both the total volume of transactions at retail establishments and the number of retailers providing financial services. Furthermore, Telangana and Uttar Pradesh were the two states that saw the greatest increases in e-commerce transactions at these establishments, indicating a surge in the aspirational population’s use of online shopping and the need for assistance when completing such transactions.
Furthermore, with a noteworthy 29% increase, Punjab has had the most growth in the distribution of MSME loans through retail outlets. Insurance payouts via retail outlets also experienced a notable surge, with increases of 24% and 14% in Kerala and Madhya Pradesh, respectively.
The research was created using data from transactions made at more than 12 lakh retail touchpoints nationwide. The report’s conclusions are supported by business data gathered throughout a comparative period, which spans from FY 2023–24 in relation to the equivalent prior fiscal year.