How Did UPI Transactions Surge 29% to 21.63 Billion in December?
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Synopsis
In December, UPI transactions reached a staggering 21.63 billion, marking a 29% growth from the previous year. Coupled with a 20% rise in transaction amount, this reflects robust consumption trends. Discover how India's digital payment landscape is evolving and what this means for consumers and businesses alike.
Key Takeaways
- 29% growth in UPI transaction count year-on-year
- 21.63 billion UPI transactions recorded in December
- Rs 27.97 lakh crore total transaction amount
- Average daily transaction amount increased to Rs 90,217 crore
- P2M transactions rose 35% to 37.46 billion
New Delhi, Jan 1 (NationPress) The Unified Payments Interface (UPI) experienced a remarkable growth of 29 percent in transaction count year-on-year, reaching 21.63 billion in December. This surge was accompanied by a 20 percent increase in the transaction amount, totaling Rs 27.97 lakh crore, as revealed by data from the National Payments Corporation of India (NPCI) on Thursday.
On a month-to-month basis, both the UPI transaction count and amount exhibited substantial growth.
The average daily transaction amount for December was Rs 90,217 crore, an increase from Rs 87,721 crore in November, according to NPCI statistics.
The month of December also noted an average daily transaction count of 698 million, rising from 682 million in November.
In November, UPI recorded a 32 percent year-on-year growth in transaction count, reaching 20.47 billion, with a 22 percent annual increase in transaction amount at Rs 26.32 lakh crore.
Additionally, monthly transactions through Instant Money Transfer (IMPS) amounted to 6.62 lakh crore in December, reflecting a 10 percent annual increase and an uptick from 6.15 lakh crore in November.
The IMPS transaction count stood at 380 million, up from 369 million in November, with daily transaction amounts via IMPS reaching Rs 21,269 crore, up from Rs 20,506 crore in the previous month.
A recent report indicated that India has reached 709 million active UPI QR codes, marking a 21 percent increase since July 2024. The widespread acceptance of QR codes among kiranas, pharmacies, transport hubs, and rural markets has made scan-and-pay the go-to payment method across the nation, as per the report by Worldline India.
Person-to-merchant (P2M) transactions continued to surpass person-to-person (P2P) transactions, demonstrating UPI's leadership in daily retail payments.
P2M transactions increased by 35 percent to 37.46 billion, while P2P transactions grew by 29 percent to 21.65 billion, as reported. The average ticket size decreased to Rs 1,262 from Rs 1,363, indicating a rise in micro-transactions related to mobility, food, healthcare essentials, and hyperlocal commerce.
Notably, India's Digital Public Infrastructure (DPI) has significantly transformed access to services, narrowing the urban-rural divide and bolstering the nation's status as a global digital leader.
Point of View
I believe that the remarkable growth of UPI transactions highlights India's advancement in digital finance. This trend not only emphasizes consumer confidence in digital payments but also showcases the efficacy of the country's Digital Public Infrastructure in bridging gaps between urban and rural markets. UPI's dominance in everyday transactions is a testament to its role in modernizing the payment landscape.
NationPress
08/01/2026
Frequently Asked Questions
What is UPI?
UPI, or Unified Payments Interface, is a real-time payment system that facilitates instant money transfers between bank accounts in India.
How much did UPI transactions grow in December?
UPI transactions grew by 29% year-on-year, reaching 21.63 billion in December.
What was the transaction amount for UPI in December?
The transaction amount for UPI in December was Rs 27.97 lakh crore, reflecting a 20% annual growth.
What does the growth in UPI transactions indicate?
The growth indicates a strong shift towards digital payments and a growing acceptance of UPI as a primary payment method.
How has UPI impacted everyday transactions?
UPI has significantly changed everyday transactions, with person-to-merchant (P2M) transactions outpacing person-to-person (P2P) payments.
