How Did UPI Transactions in India Surge 35% in H1 2025, Reaching Rs 143 Lakh Crore?
Synopsis
India's UPI transactions have skyrocketed by 35% in the first half of 2025, reflecting a massive cultural shift towards digital payments. With over 106 billion transactions worth Rs 143 lakh crore, the nation is witnessing an unprecedented transformation in how people conduct everyday financial activities.
Key Takeaways
UPI transactions surged by 35% YoY.
Total UPI transaction value reached Rs 143.34 lakh crore.
Person-to-merchant transactions rose by 37%.
QR-based payment adoption more than doubled.
Credit card usage is shifting towards everyday spending.
New Delhi, Oct 29 (NationPress) India's Unified Payments Interface (UPI) continues to be the leader in the nation's digital payments sector, with a remarkable 35% year-on-year (YoY) increase in transactions, totaling 106.36 billion in the first half of 2025, as per data released on Wednesday.
The overall value of these transactions hit an astounding Rs 143.34 lakh crore, showcasing the integral role digital payments play in daily life across India, according to Worldline's India Digital Payments Report (1H 2025).
The report indicates a decrease in the average UPI transaction size from Rs 1,478 during the first half of 2024 to Rs 1,348 in the same timeframe of 2025.
This reduction suggests that consumers are increasingly utilizing UPI for smaller, routine purchases ranging from tea stalls and grocery stores to online shopping.
Significantly, person-to-merchant (P2M) transactions surged 37% to 67.01 billion, propelled by the phenomenon known as the “Kirana Effect,” which highlights the importance of small and micro businesses in India's digital economy.
India's QR-based payment framework also experienced substantial growth, more than doubling to 678 million by June 2025, marking a 111% increase from January 2024.
The number of Point-of-Sale (PoS) terminals increased by 29% to 11.2 million, while Bharat QR reached 6.72 million.
Consequently, India now boasts the world's largest merchant network, fueled by the adoption of small businesses and governmental inclusion initiatives.
In other findings, credit cards are transforming into tools for premium spending.
The count of active credit cards rose by 23% between January 2024 and June 2025, with monthly expenditures exceeding Rs 2.2 trillion.
Despite a 6% decline in the average transaction size, this trend suggests that credit cards are being increasingly used for everyday purchases. In contrast, debit card usage at PoS dropped nearly 8% as smaller transactions shifted to UPI.
Mobile payments maintained their status as the most popular method for daily transactions, growing 30% YoY to 98.9 billion transactions valued at Rs 209.7 trillion.
Point of View
I believe that the remarkable growth of UPI transactions is a testament to India's advancement in digital payments. This shift not only empowers consumers but also strengthens small businesses, thus fostering economic growth. The government's initiatives and technological innovations have played a crucial role in this transformation, ensuring that India remains at the forefront of digital finance.
NationPress
11 May 2026
Frequently Asked Questions
What is the growth rate of UPI transactions in 2025?
UPI transactions in India grew by 35% year-on-year in the first half of 2025.
How many transactions were recorded in the first half of 2025?
There were 106.36 billion UPI transactions recorded in the first half of 2025.
What is the total value of these transactions?
The total value of UPI transactions reached Rs 143.34 lakh crore.
What is the average size of UPI transactions?
The average UPI transaction size decreased from Rs 1,478 in the first half of 2024 to Rs 1,348 in the same period of 2025.
How are small businesses affecting UPI transactions?
Small and micro businesses are significantly boosting UPI transactions, a trend referred to as the 'Kirana Effect.'
