Did Digital Payments to Merchants in India Surge by 19% in June?
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Synopsis
Explore the remarkable growth of digital payments in India, with a staggering 19% increase year-on-year in June. Discover the driving forces behind this surge and the implications for the future of financial transactions in the country.
Key Takeaways
- Digital payments to merchants in India increased by 19% YoY in June.
- UPI-P2M payments rose by 22%, reaching Rs 6.8 trillion.
- Credit card spending saw a 15% increase, totaling Rs 1.8 trillion.
- Active cards in force remained unchanged at 11.12 crore.
- E-commerce dominated credit card spending, accounting for 63.1% of total spends.
New Delhi, July 30 (NationPress) Reports indicate that digital payments made to merchants in India experienced a substantial increase of nearly 19% year-on-year (YoY) in June, reaching Rs 9,10,000 crore (approximately Rs 9.1 trillion).
According to data from Equirus Securities, the UPI person-to-merchant (P2M) payments were the primary contributor, escalating by 22% YoY to Rs 6.8 trillion, while credit card expenditures rose by 15% YoY to Rs 1.8 trillion.
In contrast, debit card usage saw a decline of 14% compared to the previous year, totaling Rs 35,300 crore.
UPI-P2M transactions accounted for 74.5% of the overall market share in June, with credit cards holding 20%.
As per the report, nearly two-thirds of UPI-P2M transactions by value exceeded Rs 2,000.
The active card count remained steady at 11.12 crore during the same timeframe.
HDFC Bank led the charge with 2.13 lakh new cards issued, followed closely by Yes Bank, Federal Bank, SBI Card, and IDFC First Bank.
Year-to-date, a total of 13.1 lakh cards have been introduced, as indicated in the report. In terms of market share, HDFC Bank continues to lead in both cards in circulation and spending, holding 22% and 27.9% shares respectively.
The realm of e-commerce has continued to dominate credit card spending, representing 63.1% of all expenditures in June.
The average monthly e-commerce spend per card was Rs 10,400, compared to Rs 6,100 at physical point-of-sale (POS) locations.
Furthermore, it was reported earlier this week that over the last six financial years (FY20 to FY25), India has seen more than 65,000 crore digital transactions, valued at over Rs 12,000 lakh crore.
Minister of State for Finance Pankaj Chaudhary, in a written response to the Lok Sabha on July 28, mentioned that the government is diligently collaborating with the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), fintech companies, banks, and state governments to enhance the adoption of digital payments, particularly in tier-2 and tier-3 cities.
Point of View
It is essential to highlight the significant growth of digital payments in India. This trend reflects the increasing adoption of technology in financial transactions, enhancing convenience for consumers and merchants alike. The collaboration among various stakeholders, including the government and fintech firms, is essential for further growth, especially in underserved regions.
NationPress
31/07/2025
Frequently Asked Questions
What was the increase in digital payments in India for June?
Digital payments to merchants in India rose nearly 19% year-on-year in June.
What are UPI-P2M payments?
UPI-P2M (person-to-merchant) payments are transactions facilitated by the Unified Payments Interface, allowing users to pay merchants directly.
Which bank issued the most new cards?
HDFC Bank issued the most new cards, totaling 2.13 lakh.
What percentage of credit card spending is attributed to e-commerce?
E-commerce accounted for 63.1% of total credit card spending in June.
How many digital transactions has India recorded in recent years?
India has recorded over 65,000 crore digital transactions, valued at over Rs 12,000 lakh crore, in the last six financial years.
