New Delhi: UPI transactions at retail stores have grown by 33 per cent in semi-urban and rural areas this year, reflecting the growing use of digital payments. In addition, there has been a 127 percent increase in business volume in insurance policy purchase and premium collection throughout the year, while the behavior of new customers has increased by 96 percent, according to the report of branchless banking and digital network PennyRB.
However, the report highlights the role that digital retail stores can play in overcoming insurance penetration challenges across India. The report’s findings are based on an analysis of real transaction data from over 100,000 small retailers (grocery stores, mobile recharge stores etc.) offering financial and digital services spread across India in rural and semi-urban areas.
The findings compare trade data from January to November 2024 with the same period in 2023. The report, Retail-o-nomics, also stated that there was an impressive 297 percent volume growth in credit products including trade loans, gold loans, etc. Personal loans, and revolving loans in rural and semi-urban areas. “This significant growth reflects the growing awareness and demand for credit solutions at the grassroots level,” the report said.
However, micro ATM and Aadhaar Enabled Payment System (AePS) cash withdrawals saw a decline in 2024. “Both transaction volume and average cash withdrawals per transaction saw a slight decline, later falling from Rs 2,624 in 2023 to Rs 2,482 in 2024. “, the report added.
According to data, AePS withdrawal increased by 35-45 percent during DBT release, especially under schemes like PM Kisan Yojana, compared to the rest of the year. “Cash withdrawals in Jammu and Kashmir recorded an impressive growth of 58 per cent in value and 74 per cent in volume,” the report said.
“By giving local retailers the tools to offer diverse services like insurance, e-commerce, and credit, we are empowering them to become key enablers of grassroots financial access and economic progress,” said Anand Kumar Bajaj, Founder, MD and CEO. , PayNearby, said.