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Is UPI being preferred over prepaid instruments (PPIs) for peer to peer payments in India?

As per the recent news report, aggregate value of transactions made through United payments interface (UPI) during May 1st –May 28th had a higher growth rate, than transactions made through mobile wallets and other prepaid payment instruments. The aggregate value of transactions between May 1st and May 28th was Rs 2450 crore, which is 11.42 % higher than the transaction value in April. At the same time, the transactions through PPI stood at Rs 2280 growing at a rate of a modest 2.1 % over the April value. Additionally, the number of transactions from UPI channel was 8.2 million as compared to 82.7 million transactions made through PPIs.

The numbers suggest  that UPI is increasingly being used for peer-to-peer transactions for a higher average ticket-size of about Rs 2988. On the other hand, average ticket size for PPIs stands at Rs 276 for both peer-to peer and merchant payments. Mobile wallets in India being semi-closed, users generally load the wallet up to the extent of their usage…
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