India’s Unified Payments Interface (UPI) continues to dominate the country’s digital payments landscape, with transactions surging 35 per cent year-on-year (YoY) to reach 106.36 billion in the first half of 2025, according to data released on Wednesday.
The total value of these transactions stood at a staggering Rs 143.34 lakh crore, underscoring how deeply digital payments have become a part of everyday life in India, according to Worldline’s India Digital Payments Report (1H 2025).
The report also revealed that the average UPI transaction size fell from Rs 1,478 in the first half of 2024 to Rs 1,348 during the same period in 2025. This decline suggests that UPI is increasingly being used for small, daily purchases, ranging from tea stalls and grocery stores to online shopping.
Person-to-merchant (P2M) transactions grew 37 per cent to 67.01 billion, driven by what Worldline terms the “Kirana Effect”, where small and micro businesses have become the backbone of India’s digital economy.
India’s QR-based payment network also saw significant growth, more than doubling to 678 million by June 2025—a 111 per cent rise since January 2024. The number of Point-of-Sale (PoS) terminals increased 29 per cent to 11.2 million, while Bharat QR reached 6.72 million. These developments have helped India establish the world’s largest merchant network, powered by small-business adoption and government-led inclusion programs.
Meanwhile, credit cards are evolving into premium spending tools. The number of active credit cards grew 23 per cent between January 2024 and June 2025, while monthly spending exceeded Rs 2.2 trillion. Although the average transaction size fell by 6 per cent, credit cards are increasingly being used for everyday purchases. In contrast, debit card usage at PoS terminals fell nearly 8 per cent, as smaller payments shift to UPI.
Mobile payments remain the most preferred mode for daily transactions, growing 30 per cent YoY to 98.9 billion transactions worth Rs 209.7 trillion.
(IANS)