The adoption of Aadhaar-enabled payments has surged exponentially in Jammu and Kashmir and the northeastern states of India, according to a recent study conducted by fintech start-up PayNearby. Meghalaya has emerged as the frontrunner in this transition, experiencing a tenfold increase in transaction value and a sevenfold rise in transaction volume for Aadhaar Enabled Payment System (AePS). Other states in the region, including Nagaland and Assam, have also witnessed substantial growth in these metrics.
The study further reveals that MicroATM transactions in Mizoram and Meghalaya have seen significant growth in both value and volume, while J&K’s retail stores have experienced a 31% increase in both aspects. PayNearby’s report emphasizes the increasingly crucial role that retail outlets play in providing convenient access to banking services in regions where traditional bank branches may not be readily available.
Commenting on the report, PayNearby MD and CEO Anand Kumar Bajaj highlighted the pivotal role of retail outlets in facilitating easy access to banking services, particularly in areas where traditional bank branches may not be easily accessible. The ‘Atmanirbhar Bharat Digital Empowerment’ report by PayNearby, a branchless banking and digital network provider, analyzed transactions across over 1.2 million retail touchpoints nationwide. The insights were derived from business data collected for the fiscal year 2023-24, compared to the previous fiscal year.
The report also revealed that transactions at retail outlets have grown by an impressive 84%. Assam ranked first in terms of overall financial and digital transactions, followed by Madhya Pradesh, Gujarat, Maharashtra, and Rajasthan. Besides J&K and the northeast, Punjab also marked a notable 29% increase in disbursements through retail stores, the highest in the country. Telangana and Uttar Pradesh recorded the highest growth in e-commerce transactions.
