UPI processes 228.5B transactions in 2025, a 33% YoY increase: Report

UPI processed a staggering 228.5 billion transactions worth Rs 299.74 trillion in 2025, a 33% year-on-year increase, solidifying its role in India's micro-transaction economy, according to a Worldline report on digital payments.

India's digital payments ecosystem has witnessed a transformative year, with the Unified Payments Interface (UPI) processing a staggering 228.5 billion transactions in 2025, marking a 33% year-on-year increase, according to a report by Worldline. The total transaction value reached Rs 299.74 trillion, solidifying UPI's position as the default payment method for everyday commerce in India, according to Worldline's annual report, "India Digital Payments Report - Year 2025 in Review".

UPI's Deepening Penetration

The report highlights India's transition to a micro-transaction economy, where digital payments are replacing small-value cash purchases across categories, from neighbourhood retail to transport and everyday services. The average ticket size (ATS) of UPI transactions continued to decline, indicating growing use for everyday purchases.

Overall, UPI ATS fell 9% to Rs. 1,314, while merchant payments ATS dropped to Rs. 592, reflecting the digitisation of small-ticket purchases.

UPI continues to dominate India's payments landscape, with strong growth in both person-to-person (P2P) and person-to-merchant (P2M) transactions. P2M payments rose 34% to 143.82 billion, indicating UPI's growing role in merchant payments.

Expansion in Acceptance Infrastructure

Merchant acceptance infrastructure expanded significantly, with UPI QR codes increasing to 731.38 million, up 15% year-on-year, and PoS terminals growing to 11.48 million, also rising 15% from the previous year, according to the report.

Contrasting Trends in Card Payments

While UPI dominates everyday payments, card usage continues to grow in high-value and online commerce. Credit card transactions increased 27% to 5.69 billion, while debit card volumes declined 23%, reflecting migration of small-value transactions to UPI, the report said. Online credit card payments reached Rs 14.53 trillion, reinforcing cards' role in e-commerce and premium purchases.

Recurring Payments Gain Momentum

Recurring digital payments are gaining momentum, with transactions on Bharat BillPay reaching 3.05 billion in 2025, up 40% year-on-year, and Rs 14.84 trillion in value, representing a 93% increase. The platform is seeing strong adoption across categories such as education fees, insurance payments, EMI repayments, and subscription services, signalling the rise of a "set-and-forget" digital payments model.

'A New Phase of Maturity'

Ramesh Narasimhan, Chief Executive Officer, Worldline India, said, "India's digital payments ecosystem is entering a new phase of maturity, where scale is being complemented by structure. As highlighted in our latest report, we are seeing distinct roles emerge across UPI, cards, and recurring payment platforms, supported by a rapidly expanding acceptance infrastructure." (ANI)

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