India’s digital payments landscape continued its rapid expansion in 2025, led by the Unified Payments Interface (UPI). According to a recent report by a leading payments research firm, UPI processed 228.5 billion transactions in 2025, marking a 33% year-on-year increase. The total transaction value rose 21% to Rs 299.74 trillion, driven by both peer-to-peer and merchant payments. Notably, P2M transactions grew faster, reflecting deeper adoption among merchants.
The report highlighted a decline in average transaction sizes, with UPI ATS falling to Rs 1,314 from Rs 1,437 in 2024. This points to a shift toward high-frequency, low-value transactions, positioning UPI as a preferred alternative to cash for everyday spending.
Merchant acceptance infrastructure also expanded significantly, particularly QR code deployments. UPI QR codes crossed 731 million in 2025, up from 633 million the previous year, establishing QR as the dominant mode of merchant acceptance. In comparison, PoS terminals grew 15% to 11.48 million, showing that while physical terminals are increasing, the ecosystem is moving toward a QR-first model for mass adoption.
Card payments moved up the value chain, with total card transactions reaching Rs 28.73 trillion in 2025, up 6% year-on-year. Growth was largely driven by credit cards, with transaction value rising 11% to Rs 23.65 trillion and volumes increasing 27% to 5.69 billion transactions. In contrast, debit card usage declined, with volumes down 23% and value falling 13%, highlighting a preference shift toward UPI for routine payments.
Bharat BillPay also saw strong growth, with transaction volumes rising 40% to 3.05 billion and transaction value nearly doubling to Rs 14.84 trillion. The platform’s growth reflects increased adoption for recurring payments such as utility bills, EMIs, and subscriptions.
Overall, India’s payments ecosystem is evolving into an integrated model: UPI dominates everyday transactions, cards cater to high-value and online payments, and platforms like Bharat BillPay manage recurring payments. This signals a maturing, diversified digital payments landscape.
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