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UPI clocks 228B transactions in 2025 as digital payments boom
UPI is driving India's digital payments growth

UPI clocks 228B transactions in 2025 as digital payments boom

Apr 06, 2026
03:59 pm

What's the story

India's digital payments ecosystem is witnessing unprecedented growth, with Unified Payments Interface (UPI) leading the charge. According to Worldline's annual "India Digital Payments Report - Year 2025 in Review," UPI processed an astounding 228 billion transactions in 2025. The report highlights a shift toward a micro-transaction economy, where small-value digital payments are increasingly replacing cash for everyday purchases like local retail, transport, and services.

Growth metrics

Transaction value up by 33%

The transaction value on UPI reached ₹299.74 lakh crore in 2025, marking a whopping 33% year-on-year (YoY) increase. However, the average ticket size (ATS) of UPI transactions fell by 9% to ₹1,314. Merchant payments averaged ₹592 during this period, indicating a wider adoption among low-ticket merchants. This data highlights the growing acceptance of digital payments across various sectors in India.

Market leadership

Surge in person-to-merchant payments

UPI has established itself as India's go-to payment platform. Person-to-merchant (P2M) payments surged by 34% to 14,382 crore transactions in 2025. The infrastructure supporting UPI also saw significant growth, with QR codes reaching 7.31 crore and PoS terminals hitting an impressive 11.48 lakh, both up by a whopping 15% from the previous year. This expansion highlights the increasing acceptance of digital payments across India.

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Payment evolution

A QR-first approach to digital payments

Worldline's report notes a transition toward a "QR-first, PoS-as-needed" model in the digital payments ecosystem. This shift is enabling even small merchants to accept digital payments with minimal hardware requirements. The change reflects the growing acceptance of UPI and other digital payment platforms among businesses of all sizes across India.

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Card usage

Credit cards gaining ground for high-value transactions

While UPI dominates small-ticket payments, credit cards are gaining ground in high-value and online transactions. Credit card transactions grew by 27% to 569 crore in 2025, with online credit card payments totaling ₹14.53 lakh crore during the period. However, debit card usage fell by a significant 23%, reflecting the migration of smaller payments to UPI. This trend shows how different payment methods are adapting to changing consumer behavior in India's digital economy.

Payment automation

Recurring payments and the new phase of digital maturity

Recurring digital payments have seen a massive spike as households have started adopting automated billing. Bharat BillPay processed 305 crore transactions, up by an impressive 40% YoY. The transaction value on Bharat BillPay almost doubled during this period, reaching ₹14.84 lakh crore. Ramesh Narasimhan, CEO of Worldline India, said India's digital payments ecosystem is entering a new phase of maturity. Distinct roles are emerging across UPI, cards, and recurring payment platforms, supported by a rapidly expanding acceptance infrastructure.

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